Chainalysis raises $100 mn in Series C at over $1bn valuation

By Pavithra R

Chainalysis, the blockchain analysis company has announced raising $100 mn Series C financing led by Addition bringing its valuation to more than $1 bn.

The finance round saw participation from previous investors Accel, Benchmark, and Ribbit increasing their investment. The FinTech is planning to use the capital to further support the international expansion of its network of financial institutions, government agencies, and other private sector businesses that relies on Chainalysis’s data platform and software solutions for transparency into cryptocurrency transactions and markets. With the increased institutional dollars flow into this newly regulated and increasingly mainstream asset class, Chainalysis will scale its platform and its people to meet the global demand for its data and technology.

“Chainalysis is the financial regulatory platform for the future of digital assets. The firm’s data, technology, and network are foundational to the blockchain ecosystem. With impressive growth to date, the opportunity for continued global expansion as the preferred partner to governments and businesses seeking compliance and investigative insights is massive,” said Lee Fixel, Founder of Addition. 

The company also announced:

• Opening offices in Singapore and Tokyo,
• Increasing number of customers by 65% to drive 100% growth in recurring revenue YoY in the third quarter of 2020,
• Assisting US law enforcement in several high-profile cases, including the Twitter hack, the forfeiture of cryptocurrency addresses associated with a North Korea aligned hacking group, the disruption of two terror finance campaigns, and the seizure of $1bn of illicit funds,
• Hiring nearly 50 employees to increase headcount by about 30%, and
• launching Market Intel, a data and insights portal for understanding cryptocurrency markets, and an asset realization program to help government agencies and insolvency practitioners handle, store, realize and monitor seized assets

“Government agencies and the private sector need the right data, tools, and insights to responsibly oversee and participate in the cryptocurrency economy. We have established a network of government agencies in over 30 countries and more than 250 of the most important businesses around the world who are making it safer and easier for consumers and businesses to transact, fundamentally changing the way money works. Our partners at Addition understand the power of our platform and are a natural partner for this next phase of growth,” said Michael Gronager, Co-Founder and CEO, Chainalysis.

Founded in 2014, New York-based Chainalysis is a blockchain analysis company offering cryptocurrency investigation and compliance solutions to global law enforcement agencies, regulators, and businesses to fight illicit cryptocurrency activity. The company serves as a strategic partner to financial institutions, governments, and cryptocurrency businesses, providing data, software, and expertise on sophisticated cryptocurrency crime and money laundering tactics, techniques, and procedures.