Chainalysis raises USD100m at a USD4.2bn valuation

Chainalysis, the blockchain data platform, has secured a USD100 million Series E financing led by Coatue, bringing its valuation to USD4.2 billion. Previous investors Benchmark, Accel, Addition, Dragoneer, Durable Capital Partners, and 9Yards Capital increased their investment in the company, and Altimeter, Blackstone, GIC, Pictet, Sequoia Heritage, and SVB Capital also participated.  

Chainalysis is known for building trust in the cryptocurrency industry as the leading provider of investigations and compliance software that enables government agencies and private sector businesses across the world to detect and prevent cryptocurrency crime and money laundering. These tools are only as good as the underlying data, and Chainalysis is the only company that has been systematically collecting information that links real world entities to blockchain transactions since 2013. 

As cryptocurrency becomes more mainstream, financial institutions are experiencing unprecedented demand for it, government agencies are prioritising threats like ransomware that abuse it, and cryptocurrency exchanges are seeking a competitive edge. Blockchain data is the asset that can help public and private sector organisations understand the risks and opportunities surrounding this asset class and promote its adoption safely and responsibly. 

This capital will be used to execute its vision as the blockchain data platform for cryptocurrency, including: 

  • Data: Deepen its data advantage by covering more cryptocurrencies and focusing on emerging use cases like DeFi, and launching a Global Intelligence function to more quickly identify warning signs for potential threats and reduce time to response 
  • Software: Develop collaboration tools in its suite of software solutions so that public and private sector teams can work together from the same data set with a consistent, shared understanding 
  • Access: Provide direct access to Chainalysis data through APIs so that government agencies, financial institutions, and cryptocurrency exchanges can combine Chainalysis data with information from within their enterprises to make better decisions 

“Chainalysis’s data platform is core infrastructure which helps to create a safe and thriving cryptocurrency market,” says Kris Fredrickson, Managing Partner at Coatue. “As cryptocurrency adoption grows, we believe that financial institutions, government agencies, and cryptocurrency businesses will increasingly deploy Chainalysis’s platform to make important decisions – from figuring out the best way to dismantle the operations of a threat actor to deciding which new cryptocurrency products are likely to drive the most demand.” 

“The future of finance and national security will be based on blockchain data-driven decisions,” says Michael Gronager, Co-founder and CEO, Chainalysis. “We’ve harnessed the transparency of blockchains to provide actionable insights into markets, threats, and business opportunities. Our partners at Coatue understand the power of our vision for the Chainalysis data platform and the software, access, and services it powers.” 

Chainalysis’s Series E financing follows its USD100 million Series D round in March 2021, bringing the total amount raised to USD365 million. Since then, the company has added industry veterans to its  leadership team  including Chief Product Officer Pratima Arora, who joins from Atlassian where she was Head of Confluence product line; General Counsel Sarah Ward, who was previously General Counsel for SiSense; and Director of Cyber Intelligence Rob Bone, who joins after a 20 year career in the FBI, most recently as Special Agent in Charge Los Angeles where he was Appointed by the FBI Director to lead all counterintelligence and cyber investigations in Southern California.  

Chainalysis is hiring hundreds of new positions across all functions to continue its global expansion.