Chainalysis: $100 Million And Over $2 Billion Valuation

By Dan Anderson ● April 18, 2021
  • Blockchain analysis company Chainalysis recently announced that it raised a $100 million Series D round of funding. These are the details.

Blockchain analysis company Chainalysis recently announced that it raised a $100 million Series D round of funding led by Paradigm. And this funding round brings the total valuation of the company to over $2 billion.

The previous investors in this round Addition and Ribbit are increasing their investment in the company. And TIME Ventures (the investment fund for Marc Benioff) also participated in the funding round.

Chainalysis’s proprietary cryptocurrency data is known for powering its industry-leading investigations and compliance software – which enables government agencies and private sector businesses across the world to detect and prevent cryptocurrency crime and money laundering. And this funding will be used to extend Chainalysis’s business to provide enterprise data solutions cryptocurrency businesses, financial services providers, asset managers, financial institutions, and government agencies.

Over the past year, the company has increased its annual recurring revenue by more than 100% year-over-year, doubled its client base to include government agencies in over 30 countries and private sector businesses in more than 60 countries, and grown its support to cover over 100 digital assets across 10 native blockchains, encompassing about 90% of cryptocurrency economic activity. Plus the company hired 116 new employees including Chief Marketing Officer Ian Andrews, who joined after eight years as a marketing executive at Pivotal and VMWare; VP Engineering Tom Woolway, who was previously an engineering executive at Dataminr and Twitter; VP Customer Success Bridget Barrot, who led customer success teams at Clubhouse Software and KAYAK; Director of Regulation and Compliance Caitlin Barnett, who was most recently Chief Compliance Officer at Bitstamp USA and has held senior compliance positions at cryptocurrency businesses and financial institutions; and Global Public Sector Chief Technology Officer Gurvais Grigg, who was an Assistant Director at the Federal Bureau of Investigation (FBI).

Chainalysis has been an enabling force for the growth of the cryptocurrency industry for over 6 years. And the company plans to hire hundreds of new positions across all functions in 2021 to continue its global expansion.

KEY QUOTES:

“At Chainalysis we  believe that eventually  every company will use the blockchain to conduct their business. We’ve collected  more information about what happens on blockchains than anyone in the cryptocurrency industry. That information enables our customers to make better data-driven decisions. Our partners at Paradigm share our vision and understand that the data Chainalysis provides will enable accelerated adoption of cryptocurrency.”

— Michael Gronager, Co-founder and CEO, Chainalysis

“Paradigm is passionate about investing in companies that enable the future of money. Chainalysis provides key data infrastructure and software for the cryptocurrency ecosystem, and as cryptocurrency adoption grows, so will demand for Chainalysis offerings.” 

— Fred Ehrsam, Co-founder, Paradigm

“What makes cryptocurrency unique is its inherent transparency, and with the right data, businesses can gain valuable intelligence. Chainalysis is already able to provide us with data that delivers insights beyond compliance that can help inform our business development activities, tailor our offerings, and identify new revenue streams.”

— Zac Prince, CEO, BlockFi