US crypto startup Chainalysis raises $6m from Japan’s MUFG, Sozo Ventures

Photo: Bloomberg

New York-based cryptocurrency compliance startup Chainalysis has raised $6 million in funding from Japanese financial group Mitsubishi UFJ Financial Group Inc and venture capital firm Sozo Ventures, the company said on Tuesday.

Chainalysis hopes the strategic investment will help it further its expansion plans in Asia, Chief Executive Michael Gronager, said in an interview.

“We are looking into opening an office in Japan in the next year or so, but we don’t yet have a specific timeline,” Gronager said.

Chainalysis is known for its work in helping law enforcement, regulators, and businesses including banks track flows of cryptocurrency to spot illicit activity.

While big banks have largely steered clear of investing in the nascent asset class, they provide banking services to companies in the space and are required to conduct anti-money laundering and other checks on their clients’ flows.

Chainalysis‘ compliance technology is important to providing the insight and anti-money laundering controls banks need in order to establish next generation compliance frameworks,” said Nobutake Suzuki, president and chief executive of MUFG’s corporate venture capital arm MUFG Innovation Partners, which carried out the investment.

Chainalysis has been growing in the Asia Pacific region, having more than doubled the number of clients there over the past year, the company said. Contracted revenue from clients in the region has grown more than 16 times, it said. Koichiro Nakamura, a managing director at Sozo Ventures, said his firm was drawn to invest by Chainalysis‘ plans to provide its services to banks and other large financial firms. “That is a very interesting and potentially huge market,” Nakamura said in an interview.

The investment follows a $30 million fundraising round from venture firms Accel and Benchmark in February.

Also read:

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Japan’s crypto platform Liquid joins unicorn club after IDG Capital-led Series C

Reuters

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.