Chainalysis, a blockchain analysis firm, has raised $200 million in a Series B funding round led by Accel, with participation from Benchmark and other existing investors. The round values the company at $1.6 billion.
Chainalysis will use the new funding to expand its product offerings and global reach. The company plans to double its headcount this year to 400 employees.
Chainalysis provides software that helps law enforcement and businesses track and investigate criminal activity on the blockchain. The company has been growing rapidly, with revenue increasing by 300% in 2018.
Chainalysis has raised a total of $75 million from venture capitalists since its inception in 2014. The company has been profitable since 2017.
The blockchain analysis market is expected to grow from $96 million in 2018 to $1.2 billion by 2023, according to MarketsandMarkets.
What is Chainalysis?
Chainalysis is a blockchain analysis firm that helps law enforcement and businesses track and investigate criminal activity on the blockchain.
The company was founded in 2014 by Jonathan Levin and Michael Gronager. Levin is a former software engineer at Google and the co-founder of the now-defunct bitcoin exchange Mt. Gox. Gronager is a software engineer and the co-founder of the bitcoin mining pool BTC.com.
Chainalysis has raised a total of $75 million from venture capitalists since its inception. The company has been profitable since 2017.
What Does Chainalysis Do?
Chainalysis provides software that helps businesses and law enforcement agencies track and investigate criminal activity on the blockchain.
The company’s software is used by over 150 organizations, including the FBI, the US Department of Homeland Security, and the IRS.
Chainalysis has three main products:
Chainalysis KYT (Know Your Transaction): Chainalysis KYT is a real-time transaction monitoring tool that is used by businesses to detect and prevent money laundering.
Chainalysis Investigator: Chainalysis Investigator is a tool that is used by law enforcement agencies to investigate crimes involving cryptocurrency.
Chainalysis Reactor: Chainalysis Reactor is a tool that helps businesses and law enforcement agencies trace cryptocurrency transactions.
In addition to its products, Chainalysis also provides consulting services to businesses and law enforcement agencies.
What is the Blockchain Analysis Market?
The blockchain analysis market is expected to grow from $96 million in 2018 to $1.2 billion by 2023, at a compound annual growth rate (CAGR) of 41.2%, according to MarketsandMarkets.
The major drivers of the blockchain analysis market are the increasing need for compliance with anti-money laundering (AML) regulations and the growing instances of cryptocurrency crimes.
The major restraints of the blockchain analysis market are the lack of standardization of blockchain technology and the lack of skilled personnel.
The major opportunities in the blockchain analysis market are the increasing venture capital investments in blockchain technology startups and the development of private blockchain platforms.
What is the Future of Chainalysis?
Chainalysis plans to use the new funding to expand its product offerings and global reach. The company plans to double its headcount this year to 400 employees.
Chainalysis is also expanding its product offerings with the launch of Chainalysis KYT for Ethereum, which will help businesses monitor Ethereum transactions in real-time.
In addition, Chainalysis is also planning to launch a new product, Chainalysis Reactor, which will help businesses and law enforcement agencies trace cryptocurrency transactions.
Conclusion
Chainalysis is a blockchain analysis firm that helps businesses and law enforcement agencies track and investigate criminal activity on the blockchain. The company has raised $200 million in a Series B funding round
