Cryptocurrency intelligence firm Chainalysis said Tuesday it has raised $13 million in additional Series B financing from Ribbit Capital and Sound Ventures, bringing its total for the round to $49 million.
- As part of the deal, the New York City-based company, which builds software that traces crypto transactions, is adding Ribbit Capital general partner Sigal Mandelker as an adviser. Mandelker is a former high-ranking Treasury Department official.
- Chainalysis said the new investments will help it “grow and deepen its government relationships.” America’s federal agency alphabet soup frequently inks seven-figure software licensure deals with Chainalysis: The Internal Revenue Service and the Securities and Exchange Commission in the U.S. have together shelled out nearly $2 million in the past two months alone.
- There are signs that Chainalysis’ tracing tools are growing in use beyond the U.S. government. Reactor, its flagship investigative product, has increased its revenue from new agency partners and foreign government customers 400% since 2019, according to the company.
- Chainalysis has found more success plugging into the massively lucrative public sector money funnel than any other tracing firm. But the crypto analytics competition is growing: Coinbase closed its first U.S. government deal (with the Secret Service) in May.