Blockchain data analytics firm Nansen has raised $12 million in a Series A funding led by Andreessen Horowitz (a16z).
Other investors in the round included Skyfall Ventures, Coinbase Ventures, imToken Ventures, Mechanism Capital, and QCP Capital.
Founded last year, Nansen analyses blockchain data to help its clients, including hedge funds and trading firms, understand what's going on and provide insights, such as identifying the best yield farming platforms. Nansen says its data helps market participants make informed decisions on project discovery, due diligence, and trading.
"As participation in the first truly open global financial markets grows, traders and collectors of all kinds — retail novices, institutional professionals, independent experts, and more — will want to understand what the smart money is doing across all blockchains," said Chris Dixon, general partner at a16z.
With fresh capital at hand, Nansen, which currently traces the Ethereum blockchain, plans to add support for Layer 2 blockchains as well, including Polygon (formerly Matic Network), Optimism, and Arbitrum. Part of the funding will also go toward expanding the firm's team.
Venture capitalists are lately pouring money into blockchain data analytics startups. In recent weeks, several firms in the sector, including Chainalysis and TRM Labs have raised funds. These firms are making bank as ransomware attacks make headlines, as The Block reported recently.
As for Nansen, the firm's Series A brings its total funding to date to over $13 million. Last year, the firm raised $1.2 million in a seed funding round.