Just four months after closing on a $49 million Series B, Chainalysis, an NYC startup that aims to prevent cryptocurrency-related crime, announced via Forbes that it has raised $100 million in fresh funding. This round brings the company’s total valuation to more than $1 billion, making it the industry’s newest unicorn.
The Series C was led by Addition, with participation from previous investors Accel, Benchmark and Ribbit.
Cryptocurrency is rapidly becoming a mainstream way to transfer money. Bitcoin, for instance, has been surging amid the pandemic and topped $18,600, its highest point in nearly three years. However, because cryptocurrencies don’t require users to disclose their real identities, criminals use the technology to launder their proceeds on darknet markets or stolen funds. Chainalysis’ investigation and compliance software helps identify bad actors and shut down illegal activity.
Today, the company works with more than 350 private and public institutions, including the U.S. Department of Justice, which has used Chainalysis’ technology to track down more than $1 billion in bitcoin and other cryptocurrencies.
“Government agencies and the private sector need the right data, tools, and insights to responsibly oversee and participate in the cryptocurrency economy,” Chainalysis co-founder and CEO Michael Gronager said in a statement provided to Built In. “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.”
This year has been an especially busy one for Chainalysis. The company opened new offices in Tokyo and Singapore in addition to its NYC headquarters, and launched features for users to better understand cryptocurrency markets and monitor any seized assets. It also claims to have assisted in several high-profile cases, including a large Twitter hack and the disruption of a couple of “terror finance campaigns.”
Plus, its number of customers has grown by 65 percent, driving the company’s recurring revenue to grow by 100 percent in Q3. Now, Chianalysis plans to use this fresh funding to fuel its international expansion and scale its platform to meet this growing global demand.
“Chainalysis is the financial regulatory platform for the future of digital assets,” Lee Fixel, founder of Addition, said in a statement shared with Built In. “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.”
