Crypto boom continues as blockchain startup Chainanalysis raises $100M funding at over $4 billion valuation
As cryptocurrency becomes more mainstream, so are the threats faced by financial institutions and investors, and governments around the world. As such, government agencies are prioritizing threats like ransomware that abuse it, and cryptocurrency exchanges are seeking a competitive edge.
That’s why Chainalysis, a blockchain startup known for building trust in the cryptocurrency industry is helping government agencies, and private sector businesses across the world to detect and prevent cryptocurrency crime and money laundering. Chainalysis provides blockchain data and analysis to government agencies and banks. Chainalysis also offers activity monitoring reports and diligence tools, which allow analysts to estimate criminal revenues and emerging threats.
Today, Chainalysis announced it has raised $100 million in funding to deepen its data coverage by adding more cryptocurrencies and further develop its software. The latest round, which was led by investment firm Coatue, puts the company’s valuation at $4.2 billion making it a solid member of the unicorn startup club. The announcement follows the $100 million funding the company raised in March.
Previous investors Benchmark, Accel, Addition, Dragoneer, Durable Capital Partners, and 9Yards Capital increased their investment in the company, and Altimeter, Blackstone, GIC, Pictet, Sequoia Heritage, and SVB Capital also participated.
Founded in 2014 by Jan Moller, Jonathan Levin, and Michael Gronager, the New York-based Chainalysis designs and develops anti-money laundering software to flag regulatory risks to cryptocurrency exchanges, government agencies, and financial institutions.
Chainalysis’ products include REACTOR, an interactive and investigation tool that identifies offenders, visualizes data, and shares results with people and organizations, and API, a transaction-based risk scoring solution that contains source and destination of funds to measure risk.
“Chainalysis’s data platform is core infrastructure which helps to create a safe and thriving cryptocurrency market,” said Kris Fredrickson, Managing Partner at Coatue. “As cryptocurrency adoption grows, we believe that financial institutions, government agencies, and cryptocurrency businesses will increasingly deploy Chainalysis’s platform to make important decisions – from figuring out the best way to dismantle the operations of a threat actor to deciding which new cryptocurrency products are likely to drive the most demand.”
“The future of finance and national security will be based on blockchain data-driven decisions,” said Michael Gronager, Co-founder and CEO, Chainalysis. “We’ve harnessed the transparency of blockchains to provide actionable insights into markets, threats, and business opportunities. Our partners at Coatue understand the power of our vision for the Chainalysis data platform and the software, access, and services it powers.”