Chainalysis, the preferred blockchain forensics contractor for the US government, has raised $30 million in Series B Funding. The new money raised will be used to expand operations and beef up the firm’s Know-Your-Transaction (KYT) tool that vets clients for more than 100 crypto exchanges and other financial institutions.
Jimmy Aki tells us more about Chainalysis in this report from Bitcoin Magazine:
The New York-based startup was founded in 2014, and it has now raised $47.6 million, suggesting that investors are still investing in crypto businesses despite the slump in prices.
Speaking with Fortune, Chainalysis CEO Michael Gronager said the company’s target audience had seen a gradual shift from what it was a year ago. According to Gronager, the company made the bulk of its money from law enforcement agencies — approximately 90 percent of its revenue — which has fallen to 40 percent. Corporate clients now make up the lion’s share of its revenue streams.
One reason for this is the rise of stablecoins which has continued to prop up an industry that has been hit by the longest bear market in its history. Chainalysis has been benefiting from the fast-rising stablecoin sector, whose adoption grew based on the increasing number of on-chain transactions.
“Born out of the ashes of this was the stablecoin as another way to easily and safely create tokens. This ability to trade U.S. dollars against crypto is very powerful,” Gronager noted in the interview.According to Gronager, the firm hasn’t turned in a profit, but it has grown three times since its Series A.
