Chainalysis has announced an additional raise of $13M to grow its government business. As the crypto industry continues to scale, Chainalysis is providing key foundational infrastructure to financial entities, governments, and crypto businesses globally. With the latest investment round, Chainalysis has now increased its Series B to $49M.
Chainalysis Capital Raise
Leading blockchain analysis company, Chainalysis has announced a $13M raise from Ribbit Capital and Sound Ventures. In doing so, the company has increased its Series B round to $49M. The previous $36M raise was facilitated through Accel, Benchmark, MUFG, and Sozo Ventures.
According to the announcement, newly raised funds will be used to on-board additional software engineers, government sales, and other important roles. As Chainalysis continues to focus on its government business, the company also announced that Sigal Mandelker will be joining the firm in an advisory capacity. Sigal is a General Partner at Ribbit Capital, but has previously spent time at the U.S. Department of Treasury ( Under Secretary For Terrorism and Financial Intelligence.)
Deepen Government Relations
Chainalysis has stressed the importance of deepening its government relations, and bringing together public and private sectors. The blockchain analysis company believes that these are important steps to mass adoption for cryptocurrency. Chainalysis has continued to work with financial entities, governments, and crypto businesses in a strategic manner. These partners have leveraged data, and software from Chainalysis to assess digital asset crime, and tactics involved in money laundering. With governments continuing to shift their focus to a “digital economy,” Chainalysis has seen its revenue grow 400% from government customers. Some of these compliance tools include Chainalysis KYT ( Know Your Transaction ) and Chainalysis Kryptos ( crypto vetting process based on KYC protocols ). As the industry continues to scale, these tools are now utilized by 180+ private sector customers, reaching 44 countries.
CEO & Co-Founder at Chainalysis, Michael Gronager stated that:
"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."
General Partner at Ribbit Capital, Sigal Mandelker also stated that:
“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. As the digital assets industry continues to evolve and grow in positive ways, I'm excited to work with the Chainalysis team to help develop public-private partnerships, enhance ground-breaking technologies in financial services, and root out illicit networks."
Companies Recently Partnering With Chainalysis
In a recent report, it was mentioned that Fireblocks recently partnered with Chainalysis. Fireblocks helps financial entities protect their digital assets, and saw extreme value in integrating with Chainalysis. Fireblocks planned to leverage some of the same tools discussed above such as KYT ( Know Your Transaction ), in order to enhance the oversight process and assess cryptocurrency transactions in real-time. When the partnership was announced, Chief Revenue Officer at Chainalysis mentioned that:
"Both security and compliance are integral to building trust in the cryptocurrency industry. By bundling product offerings with our integration partners through the Chainalysis Partner Program, we are ensuring our customers adhere to security and AML best practices, ultimately making cryptocurrency more accessible for all."