Crypto data firm Coin Metrics raises $6 million in Series A funding

Co-founder Nic Carter told Decrypt the startup aims to be “the world’s most popular and trusted source of economic data relating to blockchains.”

Coin Metrics, a cryptocurrency data and infrastructure startup based in Boston, announced a $6 million Series A funding round on Thursday led by venture giant Highland Capital Partners. Coinbase, Fidelity, and Castle Island Ventures, among others, also participated. Coin Metrics says it plans to use the funds to expand its team, products, and marketing efforts. 

The startup, co-founded by Nic Carter in 2017, provides data sets and analysis for investors and enterprises who want to better understand the nascent crypto market. Carter told Decrypt, “Coin Metrics is aiming to be the world’s most popular and trusted source of economic data relating to blockchains, both on the pricing, index, and reference rate side, and in terms of network data.”

But the project comes from humble beginnings. “Keep in mind it began as a simple academic research project, and we posted the data for free with no commercial objective,” Carter said. “Later on we commercialized it, which gave us more resources.”

Despite the change from research project to commercial enterprise, Carter said the vision remains the same: to characterize the economic nature of every major public blockchain. “This means deeply understanding what they are for, how they are used, and who is using them,” said Carter. One way Coin Metrics tries to do this is by running full nodes on blockchains like Bitcoin and Ethereum, allowing them to provide more nuanced insights. 

In the press release, CEO Tim Rice pointed to recent insights the startup provided amidst the volatile and chaotic crypto market, like what the recent surge in stablecoins meant for the market. “The insights we have been able to provide customers highlights the importance of the work we are doing,” he added.

Sean Judge, principal at Highland Capital, agreed. “Financial institutions require clean and transparent data to make decisions,” he said. “It’s become clear that Coin Metrics is the premier destination for network and market data.”

Carter made clear, however, that its data isn’t only for businesses. Coin Metrics, he said, also wants “to become a trusted and ubiquitous source of free data for the crypto community so that they can have all the information they need to evaluate the usage and performance of public blockchains.”

Their funding round was well-timed, and should allow them to continue reaching community members and businesses alike. “Coin Metrics was lucky and prudent to raise before the economic crisis hit and they have plenty of runway to get to cash flow positive, hopefully within the next 12 months,” Carter said.