Cryptocurrency data provider Coin Metrics has raised $6 million in a Series A funding round, with participation from Fidelity Investments and Coinbase Ventures.
Led by Highland Capital Partners, Coin Metrics announced Thursday the round had also received placements from Communitas Capital, Avon Ventures, Raptor Group, Digital Currency Group (DCG), Castle Island Ventures and Collaborative Fund.
Based in Boston, Coin Metrics said the funding will help expand its offerings and team. The company, which provides analytics on open-source blockchain data for institutional clients, said it had also earmarked funding for improving data sets.
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Established in 1988, Highland Capital Partners is an early-stage investment fund with a portfolio of 271 companies, and has long had a focus on tech, being a backer for the dot.com era search engine Ask Jeeves. It participated in Coin Metrics’ $1.9 million seed round in 2019.
Sean Judge, principal at Highland Capital, said it was imperative the quality of data in crypto improve now that traditional investors are entering the digital asset space.
“Financial institutions require clean and transparent data to make decisions. These same requirements exist for bitcoin (BTC) and other cryptoassets that have emerged over the last decade,” he said. “It’s become clear that Coin Metrics is the premier destination for network and market data.”
Coin Metrics CEO Tim Rice said the fact his company already follows strict due diligence processes – to comply with requirements set by its clients – meant his company is in the best possible position to cater to an increasingly institutional space.
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The company was founded in 2017 by Rice, Castle Island’s Nic Carter and Aleksei Nokhrin.