Founded in 2014, Chainalysis is a blockchain data platform. It provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 70 countries. Their Chainalysis’s data powers investigation, compliance, and its market intelligence software has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely. The company reached unicorn status in 2021 and is now valued at $8.6 billion.
Ever since Michel Gronager was a kid, he saw himself as an innovator. He started his entrepreneurial journey, before co-founding Chainalysis, as the co-founder of Kraken, a digital asset platform and prior to this, he had a decade of experience in working on big data projects. He points out that the first thing he looked at when finishing university was virtual reality, and distributed computing platforms to do virtual reality. That led him to data, which ended up being his passion, because at the end of the day “data is growing way faster than anything else, and the opportunity of analysing that is huge.”
Gronager analysed data for high-energy physics and big science projects such as the Large Hadron Collider at CERN, the European Organization for Nuclear Research. When he stopped working in the public sector, he was bitten by this innovation bug to build something himself and have a private company. At the same time, he stumbled upon crypto, and at a moment when the industry was transforming and growing rapidly,
Kraken’s Jesse Powell asked him to join the team. It became clear to him that there was a path forward with his expertise in big data, so he created a company that didn’t exist at the time, with a fresh idea: indexing and understanding all the data that is in the crypto space as it is growing, and this is where Chainalysis began.
The cryptocurrency sector is a peculiar one, where everything changes constantly, says Chainalysis’s CEO. There is a vast amount of innovation happening around crypto, so it means that his company must be deep in the product side and be constantly innovating and spending their efforts in building the right tools and products around the DeFi space. At the same time, another peculiarity of the crypto space is that it’s global. As Michael states, “crypto is everywhere and was born being global”. This also means, for a company like his, that they need to focus not on one market or one jurisdiction but work and think globally.
One of the things that changed when the company reached unicorn status back in 2021 is that it allowed him to make certain high-profile hires that would have been hard to make otherwise. Unicorn status “opened the door for talent”, he says, and this is important in a quite crowded space as technology. But Chainalysis has a couple of unique aspects that have helped them differentiate over the years. First, what they’re building is unique, so they’re not one of many. They’re building the market for themselves and growing the TAM every day and working with new customers.
Secondly, their business is very mission driven. What joins their public sector clients, more than 150 in 35 countries around the world, is that they’re trying to keep society safe, keep nations-state safe, and protect these from terrorists and other negative actors. They need to ensure they’re gaining the trust of these institutions, and a huge part of their culture is believing in their work and delivering high-quality data while maintaining humility and building trustworthy relationships with all stakeholders and c