Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm.
Blockchain analysis company Chainalysis is set to increase its valuation to $1 billion following its next scheduled Series C funding round that will come as early as next. According to a report by Forbes, the new Chainalysis funding round is set to be led by Addition, a new Venture Capital firm founded by Lee Fixel. According to Forbes, the Series C funding round which is set to raise Chainalysis valuation to $1 billion will also be backed by the firm’s early investors including Ribbit Capital, Accel, and Benchmark.
Chainalysis has seen impressive growth in the past years and though Chainalysis Co-Founder and Chief Executive Officer Michael Gronager declined to give a snapshot of the firm’s earnings and revenues, Forbes projected that Chainalysis raised about $8 million in revenues in 2018. From Gronager’s confirmation that Chainalysis grew by 96% in the past year with earnings expected to double by 2021, Chainalysis is undoubtedly in a good place to turn a profit for its investors.
Chainalysis’s presence in the crypto space has been marked by the offering of data analytic services that helps to track fraudulent transactions bordering around cryptocurrencies. In describing its services, Chainalysis noted that it “provides compliance and investigation software to the world’s leading banks, businesses, and governments,” adding that its “experts in financial crime and blockchain analysis empower customers to derive insights they can act on.”
This bogus data analytics provision has drawn clients including the likes of payment service giant Square Inc (NYSE: SQ), and numerous government agencies. To date, Chainalysis clients have risen by 65% in the past year, and the firm’s 300 client base feature about 250 from the private sector and US government agencies accounting for about 30 according to Forbes.
“We’ve really shown that, that it’s possible to build a world-class business to business software as a service company by serving data in the crypto space,” says Gronager. “And really owning the data part of crypto,” which it is serving to its clients.
Chainalysis Valuation: Tale of Value and Expertise
Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm. The impressive valuation Chainalysis is recording today takes deep roots from its role in serving value with its offerings.
As Coinspeaker reported back in August, Chainalysis published a report stating that investors moved about $50 billion in cryptocurrencies to avoid Beijing rules. Such reports help reveal the exact state of events in order to help appropriate actors know what to do, consolidating its transparency role in the space. Experts believe that with a greater level of transparency, the crypto sphere can draw more institutional adopters following the likes of MicroStrategy Incorporated (NASDAQ: MSTR) amongst others.
The brain behind the Chainalysis project, Michael Gronager, and Jonathan Levin is not just driven to use their expertise to drive the business and its offerings, they are also set to use the funds from this funding round to expand their staff, to include more developers.
“The way you make things scale today in a compliance department is not by adding ten people,” Gronager says. “But it’s by adding one developer.”
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