Chainalysis Expands Series B Funding With a Further $13M Funding
Blockchain intelligence platform Chainalysis has raised an additional $13 million to expand the company’s Series B round to $49 million. Behind the latest cash injection were Ribbit Capital and Sound Ventures.
Chainalysis has initially nabbed a $30 million investment in February 2019, led by venture firm Accel, a growth-stage venture capital firm, then raised a further $6 million from two major Japanese investors in April.
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The 75-person startup, which has offices in New York, Washington DC, and Copenhagen, provides financial institutions, cryptocurrency exchanges and law enforcement with a platform to detect and investigate cryptocurrency money laundering, fraud, and compliance violations.
Chainalysis is also selling its bitcoin-tracing technology and compliance software to banks and brokers to monitor and link digital identities to cryptocurrencies.
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The fund injection will be used to expand the startup’s operations including doubling down on its head count with the addition of software engineers, government sales, and other business roles.
“Chainalysis has done terrific work providing blockchain analysis and tools to financial institutions, government agencies, and exchanges, while working to track, analyze, and disrupt illicit activity,” said Sigal Mandelker, General Partner at Ribbit Capita who alo joins Chainalysis as an advisor.
The New York-based firm is best known for its Chainalysis KYT solution for token issuers which helps them comply with regulatory requirements across different jurisdictions. Founded in 2014 by Jonathan Levin, Jan Moller, and Michael Gronager, Chainalysis invests across Bitcoin, Bitcoin Cash, Ether, Litecoin, and other top cryptocurrencies.
Chainalysis’ compliance software can help both crypto firms and law enforcement agencies detect suspicious activity in order to battle any related criminal activity. It uses pattern recognition, algorithms, and millions of open source references to “identify and categorize thousands of cryptocurrency services to raise live alerts on transactions involved in suspicious activity,” the company says.
“Chainalysis is founded on the belief that providing data insights into cryptocurrency activity will unite government agencies, exchanges, and financial institutions to fuel the industry’s growth. Ribbit Capital’s deep fintech, cryptocurrency, and government experience and Sound Venture’s commitment to creating safer digital environments through enterprise software make them natural partners as we continue our high-growth trajectory and global expansion,” said Michael Gronager, CEO and Co-Founder of Chainalysis.
