The blockchain asset market analysis company Amberdata Inc. today announced that it has raised $30 million in new funding led by Knollwood Investment Advisory to expand its operations in response to accelerating institutional interest in Web3 and decentralized finance.
This Series B funding round brings the total raised by the company to $47 million to date, including a Series A funding round for $15 million in September. The round included investments from Coinbase, Nexo, Nasdaq Ventures, Citi and others.
Amberdata says its products provide deep insights into decentralized finance markets for the world’s largest financial institutions. DeFi is part of Web3, the decentralized web, which uses self-executing software on blockchains to create financial instruments that operate peer-to-peer without the need for banks or middlemen.
“The rate of institutional adoption of crypto is truly astounding,” said Amberdata Chief Executive Shawn Douglass. “We’ve seen our revenue double in the first quarter of this year as the world’s largest financial institutions come to us for the critical data they need for research, trading, risk, analytics, reporting and compliance as they enter digital assets.”
According to the DeFi analytics website DefiFiPulse, the total locked-in value of the market was about $10 billion in January 2020 and peaked at more than $100 billion in November 2022. The market value has since dropped to approximately $74 billion this month.
This value is tied up in people using numerous DeFi apps that allow them to buy tokens, exchange them and use them as financial instruments. For example, there are decentralized apps that act as interest-bearing accounts, allow users to take out loans, trade tokens on margin or act like other financial instruments, such as derivatives.
It’s still early days for DeFi, but many large and small financial institutions have begun to see the value of digital assets. As a result, Amberdata wants to position itself to demystify the role of data in Web3 and blockchains to provide deep insights into token economies so that they can invest safely.
“Institutional demand for digital assets has gone parabolic this market cycle, and Amberdata’s data analytics solution gives institutional investors the market intelligence they need to meet client and proprietary information needs,” said Tatiana Metodieva, Nexo’s head of corporate finance and investments.
When it comes to Web3 and DeFi, every transaction that happens is stored publicly in blockchain ledgers, sometimes across multiple blockchains. That provides a vast, constantly updating dataset that needs to be well-integrated for any institution to use Web3 digital assets fully. Big institutions will need proper tools for managing their treasuries and accounts, as well as complying with regulations and doing taxes.
Amberdata isn’t alone in working to provide investors with DeFi data analysis to assist them with making better decisions about investments. Treehouse Finance, which offers its products to both everyday investors and institutions, raised an $18 million seed round in March.
“Amberdata is poised for massive growth and this financing will allow us to accelerate the expansion of our worldwide go-to-market activities, scale our industry-leading data infrastructure and build out our world-class customer success team,” said Douglass.