Blockchain data analytics firm Chainalysis has raised $170 million in their latest funding round at a valuation of $8.6 billion, more than doubling its $4.2 billion valuation from last June, according to The Information.
According to the report, current investor GIC, which is one of three investment entities in Singapore that manage the government’s reserves, is leading the Series F round.
Chainalysis was first valued at over a billion dollars in its Series C round in November 2020. That then rose in March 2021 to over $2 billion, before doubling again in June of the same year during its Coatue Management-led Series E.
Launched in 2014, New York-based Chainalysis provides blockchain data and analysis for preventing crime and money laundering to both government agencies and private companies. Per its Crunchbase profile, the latest round puts the total amount of money raised to date at $537 million.
Chainalysis isn’t the only company to boast a massive valuation of late. MoonPay hit $3.4 billion in November, India’s CoinDCX doubled its valuation to $2.15 billion last month, and reports suggest The Sandbox is eyeing one at $4 billion.
According to research from Galaxy Digital, last year VCs invested more than $33 billion into crypto and blockchain startups. Of that, two-thirds went to fundraising rounds totaling above $100 million. In the fourth quarter of 2021, valuations in the crypto and blockchain space were 141% higher than in the rest of the VC space.
Even against the backdrop of declines in the market, rises in valuations have continued in 2022, according to Pitchbook. Late-stage, post-money valuations for VC-backed crypto companies have increased by an average of 91% to $3.95 billion so far this year.
These high valuations led Digital Currency Group founder Barry Silbert to take to Twitter on May 3 and call some valuations “insane,” adding it “feels like the calm before the storm.”
Despite being an early entrant into the world of blockchain analytics, and still its biggest company, Chainalysis is also having to contend with competition out to challenge it. In September 2021, Mastercard bought out CipherTrace for an undisclosed sum. The following month London-based Elliptic raised $60 million in its Series C round.
And in April this year, Coin Metrics snagged $35 million in Series C financing, led by Acrew Capital and Bank of New York Mellon.
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