Chainalysis, the cryptocurrency transaction analysis startup, has raised $30 million in Series B funding.
The firm will use some of the funding to open a new office in London and a research-and-development lab in a bid to expand its presence in the U.K., where it has worked closely with the likes of Barclays, the High Street bank. The funding round suggests that investors are still putting their money into industry businesses despite the prolonged bear market in cryptocurrencies.
The round was led by seasoned VC firm Accel and included additional investments from Benchmark, which led Chainalysis’ $16m Series A last April. Accel’s investment was led by Amit Kumar and Philippe Botteri, and Botteri will represent Accel on Chainalysis’s board of directors.
Michael Gronager, CEO and co-founder of Chainalysis, said the investment demonstrates a continuing appetite to make a long-term bet on the foundations of the emerging crypto ecosystem, telling CoinDesk:
“The investment and the timing of it shows that, despite fluctuating prices, there is quite a strong conviction among some very big VCs that this is not a short term play.”
Although there are concerns among businesses about Brexit – the U.K.’s pending departure from the European Union – Gronager highlighted the importance of London as a leading fintech hub. Chainalysis currently employs 75 people and has offices in New York, Washington and Copenhagen.
In addition to opening a new London office, Chainalysis will also explore research partnerships and collaborations with universities in London, which Gronager said are leading the way in some areas of cryptocurrency research.
Asked if that meant University College London (UCL) or Imperial College, he said: “We haven’t chosen a side there.