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FREMONT, CA: "Despite recent headwinds in the industry, we continue to see unparalleled innovation within the blockchain space—and we're only scratching the surface of the transformational impact this technology will have on legacy business models and the global economy," said Ryan Navi, principal at ParaFi Capital. "We believe there are significant value-creation opportunities at the data and infrastructure layer of blockchain, where platforms will not only make blockchain data more accessible and transparent but also drive new insights and revenue opportunities for customers. We believe that this segment of the blockchain ecosystem will play a large role in the next phase of growth and anticipate widespread adoption. When we first met Max and heard his vision for Elementus, we saw an entrepreneur and a company that was perfectly positioned to capitalize on this opportunity. We couldn't be more excited to invest in this team and help them fulfill their potential."
Crypto-native investment and technology group ParaFi Capital led a $10 million Series A-2 funding round for web3 company Elementus. With ParaFi Capital's blockchain data intelligence platform, organizations of all sizes can leverage the power of blockchain. Following a $12 million raise in late 2021, the investment brings Elementus' total funding to $27 million. It also coincides with a growing demand for more transparency across blockchain-based businesses in the wake of a year marked by several high-profile collapses in the broader cryptocurrency landscape.
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Founded in 2018, the investing and technology company ParaFi specializes in a token, venture, and quantitative strategies. As one of the first and largest institutional investors in the field, ParaFi has supported many ground-breaking inventors and protocols. The company uses infrastructure and protocols to invest in a highly technical manner. After a productive year despite weak markets, it made the main investment in Elementus.
"Last year has thrown into the limelight the tremendous importance of comprehension, auditability, and transparency of blockchains," said Max Galka, CEO of Elementus. "As the broader crypto industry seeks to emerge from a tough year, it will be critical to do so in a way that foments trust, reliability, and security among both users and businesses operating in this still-nascent market. This new strategic investment from ParaFi allows us to continue building the world's most advanced industrial-grade blockchain data solutions in the world that will help return confidence and transparency to blockchain-based businesses."
Blockchain technology and digital currencies are laying the foundation for the future of finance and commerce using Elementus' blockchain intelligence platform. Major U.S. organizations use it to resolve high-profile ransomware cases. Businesses need actionable insights to grow and prosper in a web3 world with its comprehensive data set and sophisticated tagging/attribution capabilities. It also enables investigation of on-chain activities, identifying risk, and discovering valuable market intelligence. Financial services and cryptocurrency exchanges may use blockchain data strategically and with the utmost assurance thanks to Elementus' data-first core and unique algorithms, which provide a complete perspective into the flow of funds at the most granular level.
The $10M A-2 raise will be used for new product development and recruiting. ParaFi led the company's Series A funding round, and it adds to an already notable 2022 in which Elementus:
Raised its valuation by 208 percent, from $52 million to $160 million; doubled its staff, adding three critical additions from Meta, JPMorgan, and Global Relay to its executive team;
Listed among The Information's 50 Most Promising Startups of 2022 in the crypto category; chosen as a Blockchain Intelligence and Forensics Expert by the Official Committee of Unsecured Creditors of Celsius Network and BlockFi in two of the most well-known crypto bankruptcies.
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