Chainalysis Banks $100M Round at $2B Market Cap - Marc Benioff Backs

March 30, 2021

Chainalysis secured a $100 million Series D financing led by Paradigm, bringing its valuation to over $2 billion. Previous investors Addition and Ribbit increased their investment in the company, and TIME Ventures, the investment fund for Marc Benioff, also participated.

Chainalysis's proprietary cryptocurrency data powers 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.

This capital will be used to extend Chainalysis's business to provide enterprise data solutions to:

Cryptocurrency businesses and financial services providers that want to optimize their market development strategies based on insights into their customers' behaviors

Asset managers and financial institutions that want to better understand cryptocurrency market trends as institutional dollars flow into this increasingly mainstream asset class

Government agencies that need to identify and map connections across datasets to build comprehensive pictures of threat actors that abuse cryptocurrency

"Paradigm is passionate about investing in companies that enable the future of money," said Fred Ehrsam, Co-founder, Paradigm. "Chainalysis provides key data infrastructure and software for the cryptocurrency ecosystem, and as cryptocurrency adoption grows, so will demand for Chainalysis offerings."

"At Chainalysis we believe that eventually every company will use the blockchain to conduct their business," said Michael Gronager, Co-founder and CEO, Chainalysis. "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."

"What makes cryptocurrency unique is its inherent transparency, and with the right data, businesses can gain valuable intelligence," said Zac Prince, CEO, BlockFi. "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."

Chainalysis's Series D financing comes on the heels of its $100M Series C round in November 2020. 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 over 60 countries

Grown its support to cover over 100 digital assets across 10 native blockchains, encompassing approximately 90% of cryptocurrency economic activity

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)

Expanded its partnership program, which now consists of over 50 companies, including Fireblocks and Flashpoint

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

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