Chainalysis, the blockchain analysis company, today announced it raised an additional $13M to expand its Series B round to $49M with an investment from Ribbit Capital and Sound Ventures. With the funds, which follows a $36M raise from Accel, Benchmark, MUFG and Sozo Ventures last year, Chainalysis will grow and deepen its government relationships and further unite the public and private sectors to fuel the cryptocurrency industry's growth through the addition of software engineers, government sales, and other business roles. Sigal Mandelker, General Partner at Ribbit Capital and former Under Secretary for Terrorism and Financial Intelligence at the U.S. Department of the Treasury, will join as an advisor to Chainalysis.
Chainalysis is doubling down on its government business to propel a flywheel of growth for the industry: when law enforcement and regulators become comfortable with cryptocurrency, exchanges are able to grow and financial institutions can enter the ecosystem safely and responsibly. Over the past year, the company has continued to enhance its unrivaled blockchain data and foundational investigative product, Chainalysis Reactor, providing insights into how and why people move money across the world and growing revenue from new government customers by almost 400%. The company's compliance products, Chainalysis KYT (Know Your Transaction) and Chainalysis Kryptos, are now used by over 180 private sector customers across 44 countries, demonstrating the need for transparency to drive growth across the industry.
"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," said Michael Gronager, CEO and Co-Founder, Chainalysis. "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."
"Chainalysis is the data platform bet, as crypto-asset adoption increases across the world," said Micky Malka, the Managing Partner of Ribbit Capital. "We're convinced that the firm's technology provides foundational infrastructure for the future of finance. Chainalysis has already seen impressive growth, and the economic opportunity is massive."
"Chainalysis's market leading position at the intersection of fintech and cybersecurity makes them an essential part of the economy of the future," said Ashton Kutcher, General Partner, Sound Ventures. "They are also one of the rare companies whose work protects society's most vulnerable people, as demonstrated by their work on assisting the shutdown of the largest ever child abuse material site."
"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 Capital. "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."
Chainalysis serves as a strategic partner to financial institutions, governments, and cryptocurrency businesses around the world, providing data, software, and expertise on sophisticated cryptocurrency crime and money laundering tactics, techniques, and procedures.
ABOUT CHAINALYSIS
Chainalysis is the blockchain analysis company providing data and analysis to government agencies, exchanges, and financial institutions across 40 countries. Our investigation and compliance tools, education, and support create transparency across blockchains so our customers can engage confidently with cryptocurrency. Backed by Accel, Benchmark, and other leading names in venture capital, Chainalysis builds trust in blockchains. For more information, visit www.chainalysis.com
ABOUT RIBBIT CAPITAL
Founded in 2012, Ribbit Capital is an investment organization with a mission to change the world of finance. We partner with visionary entrepreneurs who seek to transform the way we transact, save, borrow, invest, and manage money. Ribbit brings investment focus, support, and partnership to accelerate the success of businesses across lending, personal finance, insurance, payments, cryptoassets, SMB services, financial infrastructure, and wallets.
ABOUT SOUND VENTURES
Sound Ventures is an LA-based, early stage venture fund founded by Ashton Kutcher and Guy Oseary. Sound is industry agnostic and invests primarily in Seed through Series C rounds, with a core lens of identifying visionary founders tackling massive problems. Our unique edge lies in bringing together the creative community and tech community; we give our portfolio companies access to the best content creators, branders and artists in the world. Notable investments across our funds (A-GRade Investments + Sound Ventures) include: Airbnb, Uber, Spotify, Robinhood, Airtable, Brex, Flexport, Lemonade, Affirm, Calm, Acorns, Gusto and Hims. Sound Ventures has invested in over 150 companies and is currently operating out of our fourth fund.