Blockchain analytics firm Chainalysis announced Friday that it secured $100 million in Series D funding, tipping the company’s valuation above $2 billion.
Paradigm, a crypto investment company, led the new round of funding. Addition and Ribbit Capital, investors from Chainalysis’ Series C and B rounds, respectively, also participated alongside Marc Benioff, who invested by way of his firm TIME Ventures.
Chainalysis provides data analytics services for blockchain networks, offering tools to both corporations as well as various agencies across the United States. The firm has played a role in a number of prominent investigations, including one that led to a significant seizure of bitcoin funds tied to the now-defunct Silk Road dark marketplace. The firm launched a tool focused on managing seized funds by law enforcement in November.
In a broader sense, the funding round is perhaps a signal that industry investors are betting on a future in which vendors like Chainalysis play a larger role in the interactions between governments and open crypto networks like bitcoin.
The firm has raised a total of $266.6 million across eight funding rounds since its inception in 2014, according to Chainalysis’ Crunchbase profile. Most recently, Chainalysis raised $100 million in a Series C funding round in November led by Addition Capital through which the startup first achieved a valuation above $1 billion.
A Chainalysis representative told The Block that the new financing will be used to bolster Chainalysis’ data solutions offerings to crypto businesses, asset managers, and government agencies.
"Chainalysis provides key data infrastructure and software for the cryptocurrency ecosystem, and as cryptocurrency adoption grows, so will demand for Chainalysis offerings," Fred Ehrsam, Paradigm's co-founder, said in a statement.