Blockchains are public databases, but that doesn’t mean they’re legible. Even experts struggle to read their complicated strings of letters, numbers, and transactions. Still, with enough savvy, the troves of data on blockchains become more manageable. New York-based Allium has made a business of taming digital asset data, and top-flight investors believe the crypto analytics startup has a shot at continuing to grow.
On Tuesday, the company announced that it raised $40 million in a Series B funding round led by Amplify Partners. Other investors include Kleiner Perkins and Theory Ventures. Ethan Chan, cofounder and CEO of Allium, declined to say at what valuation he raised the capital.
Chan says institutional players like Visa and even the U.S. Federal Reserve have cited Allium’s data. “It’s never been a better time for the institutional side,” he added, referring to the swathe of Wall Street firms diving into blockchain.
Controlling the data source
Blockchain analytics companies aren’t unique. As crypto boomed a decade ago, a proliferation of startups promised to make sense of the deluge of coins, projects, and blockchains. But, during the recent crypto downturn that’s seen Bitcoin more than halve in price since October, analytics startups have suffered.
