The time for fund raising for Bitcoin companies is up and even small companies and startups are able to fetch attractive seed funding from venture capitalists. Now, Coinalytics which claims to be a real-time intelligence services provider has raised $1.1m. The company says that it is a part of a seed round led by Palo Alto-based incubator The Hive.
The organization is not too much old as it was founded in the last year in April 2014; however, in very short span of time it has been able to attract attention from venture capitalists. In fact, Coinalytics which describes itself as a real-time intelligence service for blockchain platforms, has been able to attract this seed funding as the investors hope there is bright prospect.
The company claims that it enables clients in the Bitcoin industry, including undisclosed payment processors, wallet providers and exchanges, to conduct risk assessment through blockchain analysis. The seed funding is expected to help it further strengthen its infrastructure and other paraphernalia needed for advancement.
Even Coinalytics CEO Fabio Federici admitted that the company is not building the infrastructure; however, according to Federici if someone is accepting Bitcoin, the organization can provide them ways to understand their users better. Thus, the fundamental focus is on helping out the clients get better experience.
Comprehensive Analysis Presentation for Clients
Additionally, according to Federici by using the blockchain and its in-house tools for pattern recognition and real-time online learning, clients are able to accept Bitcoin transactions before they are confirmed by the payment system’s mining network. He was quoted saying that they analyze the inputs of the transaction, the structure of previous transactions and pull in metadata around those inputs to get a feel for whether the customer is reliable
Federici is also of the view that though it is a graduate of 500 Startups, had originally sought to apply its data analysis for Bitcoin traders, as the industry shifted toward an interested in blockchains more broadly, the startup moved with the direction of the market. Thus, there have been various developments that prompted him to change the course of action.
Nonetheless, he also admitted that most of the demand was more about the blockchain and trying to get insights from the blockchain, so the company decided to focus on blockchain only. Though there are not many people at the firm, with three persons it offers APIs and front-end interfaces for clients.
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