Chainalysis Raises $100 million Bringing Firm's Valuation To $4.2 Billion

The company would provide more access via the use of APIs, so government agencies, financial institutions and crypto currency exchanges can leverage the firm's data.

As at the time of writing this news, the following information was gathered;

The blockchain intelligence and surveillance firm Chainalysis has generated $100 million from investors like Coatue, Benchmark, Accel, Addition, Dragoneer, Sequoia Heritage and SVB Capital during the Series E funding.

The company aims to expand its resources and deepen data to cover more cryptocurrencies and focus on use cases like decentralized finance (defi), as the financing brings the company's valuation to $4.2 billion.

The blockchain platform is designed to create a transparent ledger and transactions can be traced all the way back to the Genesis block. In other words it doesn't necessarily mean that a person can pinpoint with accuracy the identity of the individual or organization behind a cryptocurrency transaction.

However the data equally assists an investigator to get valuable answers.

Blockchain surveillance was not in existence during the early bitcoin days, but a few years after the network effect gathered impetus to become widespread.

Over the years when companies upped the stakes by monitoring dozens of blockchains besides Bitcoin, it led the creation of two dozens of blockchain intelligence and surveillance firms.

On June 24, Chainalysis revealed its aim to expand operations a great deal, from the $100 million generated from investors. As a matter of fact, the company was launched in 2013 and thus provides blockchain data to government, Institutions and exchanges in over 60 countries. The company's $4.2 billion valuation was generated through the Series E funding, which was led by Coature.

The Series E follows the $100 million Series D round the company raised in March 2021, and the funds will be used to expand services across the board. Three expansion concentrations were mentioned in the announcement which includes deepening data. This would entail monitoring more cryptocurrencies and focus on defi. In addition to the expansion of services, there will also be the creation of software solutions for both the public and private sector as indicated.

Other important updates from the news include;

Chainalysis also said it would provide more access via the use of APIs so "government agencies, financial institutions and cryptocurrency exchanges' ' can leverage the firm's data. The company has competition from the likes of well-known blockchain intelligence firms like Ciphertrace and Elliptic.

Other firms involved in the analytics and blockchain monitoring field include organizations like Sixgill, Tibco, Credits, Crystal Blockchain, Dune Analytics, Madena, Bitrank, Ocyan, Alethio, Bison Trials, Blockpit, Black Monitor, Bloxy, Postchain and Scorechain. Chainalysis"s Series D and E rounds bring the total amount raised by the firm to $36.5 million.

In conclusion, Blockchain analysis has been big business all across the globe and governments and law enforcement agencies have paid big money for these services.

It was estimated that in 2019 more than 80% of cryptocurrencies in existence were tracked by blockchain surveillance, Chainalysis and Ciphertrace.

What are your thoughts about the generation of $100 million by Chainalysis to bring the company's valuation to $4.2 billion?