Chainalysis, the blockchain data platform, today announced a $170 million Series F financing led by GIC, Singapore’s sovereign wealth fund, bringing its valuation to $8.6 billion. Previous investors Accel, Blackstone, Dragoneer, and FundersClub increased their investment in the company, and the Bank of New York Mellon and Emergence Capital also participated. Chainalysis is now the largest enterprise SaaS company in the cryptocurrency industry and will use the funds to continue to invest in product innovation and scale its global operations to meet customer demand as the asset class gains mainstream acceptance.
Although government agencies have known for years the importance of Blockchain data and analysis, the recent rise in demand for business intelligence and risk management solutions from DeFi platforms and exchanges scaling their businesses as well as financial institutions entering the cryptocurrency market has been remarkable.
Chainalysis’s past year has seen:
- It has now more than 750 customers from 70 countries and has increased its customer base by 75%.
- It doubled its customer base in the private sector and tripled its customer base in financial services. Now, more than 100 financial institutions are its customers.
- 75% to 150 more customers who account for over $100k in annual revenue.
Business Momentum & Customer Successes
Chainalysis has been partnering with new types of customers since June 2021 when it raised Series E funding. These include NFT platforms like Dapper Labs and fintech companies like Robinhood. Traditional financial institutions such as the Bank of New York Mellon and Cross River Bank in Australia have also been partnered with Chainalysis (CBA). There was a significant increase in business across the globe, with Asia Pacific seeing a breakout in 2021 and more that doubling its customer and revenue. It has maintained a high level of customer satisfaction, with a score of 80%+ even as the company grows.
Customers of Chainalysis also had great success in disrupting criminal activity, and recovering funds. In November 2021, the IRS Criminal Investigations announced that it had seized over $3.5 billion worth of cryptocurrency in 2021 — all from non-tax investigations — representing 93% of all funds seized by the division during that time period. Other successes include the $2.3 million seized from the ransomware group behind the Colonial Pipeline attack, and OFAC’s sanctioning of two Russia-based cryptocurrency services heavily involved in money laundering.
Chainalysis continues to invest in its data platform in order to support new and improved risk management and business intelligence tools. These recent improvements include:
- Chainalysis offers a deepened data advantage. Blockchain analysis tools can only be as good as their underlying dataset. Chainalysis now offers comprehensive DeFi identifications, including 100% coverage for the Top 15 DEX liquidity pool, as well as improved coverage for lending, oracle protocols, and yield-aggregators.
- Launched cross-chain graphing: With the increase in the number of blockchains — and of smart contracts that make them interoperable — Chainalysis Cross-Chain Investigations makes it easy for investigators to navigate this complicated ecosystem in a single graph.
- Chainalysis offers expanded transaction monitoring capabilities. Chainalysis now screens an average of $1 Trillion per month across all cryptocurrency assets. This enables our customers to quickly list new assets without any risk.
- Chainalysis obtained SOC2 Type II Certification. Chainalysis conducted its second compliance audit on the KYT and reactor products. It attested to its successful implementations of controls in the Security-Availability trust service criteria.
Chainalysis has employed more than 450 people in the last year and has now over 700 employees. To support the company’s continued growth and strengthen its operational functions, Chainalysis recently hired executives across functions, including:
- Sari Granat, President and Chief Operating Officer: Granat was previously EVP, Chief Administrative Officer & General Counsel at IHS Markit, where she led and scaled the data, analytics and technology company’s legal, compliance, enterprise risk, information security, and information technology functions through 10 years of growth and transformation.
- W. Thomas Stanley is the President and Chief Revenue officer. Stanley was previously CRO for Tanium. He drove hypergrowth to more than $500M in ARR while expanding international markets and building out the partner sales organisation.
- Mikaela Smith (Global VP Talent Acquisition): Smith has focused her efforts on global scaling businesses through hypergrowth over the past 11 years at Slack, Twitter and has launched and operated innovative diversity-focused programs and developed next-generation Talent functions. Caroline Malcolm is the Head for International Policy at the Organisation for Economic Co-operation and Development. Malcolm has been with the Organisation for Economic Co-operation and Development for 12 years, most recently as the Head for its Global Blockchain Policy Centre.
“Over the past year, the cryptocurrency industry crossed into the mainstream with financial institutions entering the space and new technologies like NFTs disrupting traditional markets,” Michael Gronager, Chainalysis CEO and Co-founder, said the statement. “Our partners at GIC understand the power of Chainalysis’ data platform and customer network, the strength of our team of leaders, and the market opportunity before us. I’m thrilled to deepen our relationship with their team, especially as we expand our business in the APAC region.”
“Chainalysis is in a unique position of running a SaaS business in the cryptocurrency space due to the stability of its business model as well as the increasing demand for trust and safety in the overall industry,” Choo Yong Chen, Chief Investment Officer for Private Equity at GIC. He concluded, “We are pleased to expand our partnership and look forward to their next stage of growth.”
“Our investment in Chainalysis is a natural progression of an already meaningful and productive alliance,” said Roman Regelman, CEO of Securities Services & Digital for BNY Mellon. “BNY Mellon is a leader in financial market innovation, and collaborating with established firms in the digital asset ecosystem, like Chainalysis, is a key pillar in our strategy.”