Coin Metrics, a blockchain analytics platform, announced on Thursday that it raised $6 million in a fresh funding round.
Led by Highland Capital Partners, the funding round has seen participation from an array of venture companies including FMR, LLC, Castle Island Ventures, Communitas Capital, Collaborative Fund, Avon Ventures, Raptor Group, Coinbase Ventures, and Digital Currency Group.
Founded in 2017, the Boston-based company offers data from different blockchains along with analytics services. Primary clients of the company include institutional investors who take digital asset investment decisions based on their offerings.
“Our ability to distill operational and economic activity occurring on a blockchain network, by running full nodes and performing deep analytics, is imperative for broader institutional investment in this space,” Tim Rice, CEO of Coin Metrics, commented.
“Recent crypto asset volatility and the insights we have been able to provide customers highlights the importance of the work we are doing.”
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Data is the key
The proceeds from the round will be used to expand the company’s product offering by enhancing the coverage of digital assets. The company will also increase its headcount, strengthening its team.
The background of its co-founders also helped the company to tap many institutional clients, including traditional asset managers, bulge bracket global investment banks, traditional hedge funds, crypto hedge funds, crypto native asset managers, and crypto exchanges.
“These firms have strict due diligence processes before onboarding a data provider, and I am happy to say we have been able [to] meet their requirements. This is a major hurdle for any vendor, much less a start-up, and is key to our continued success,” Rice added.
“Financial institutions require clean and transparent data to make decisions. These same requirements exist for Bitcoin and other crypto assets that have emerged over the last decade. It’s become clear that Coin Metrics is the premier destination for network and market data,” Sean Judge, principal at Highland Capital Partners, said.