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Exclusive: Microsoft's M12 invests $4M in blockchain startup Metrika

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Illustration: Brendan Lynch/Axios

Metrika, a blockchain monitoring platform, raised $4 million in extended Series A funding from Microsoft's venture fund, M12, and existing investor Nyca Partners, the company tells Lucinda exclusively.

Why it matters: Metrika and its investors believe that financial institutions are still attracted to parts of blockchain's underlying technology, despite regulatory crackdown rippling through the industry.

Details: Metrika, which raised a $14 million Series A in 2021, has largely served crypto-native projects since its founding in 2017.

  • The new funding marks Metrika's expansion into the financial services sector, says CEO Nikos Andrikogiannopoulos.
  • "The extension and Microsoft's participation signals that we are transitioning to a different set of customers. It's where I think crypto is expecting to get widely adopted," he said.

How it works: Metrika's platform monitors whether there are errors, including human and code, on different blockchains. It aims to catch expensive operational outages before they occur.

  • That contrasts with larger monitoring platforms like Chainalysis or TRM Labs, which are better known for tracking fraud and managing KYC/AML compliance.

Of note: Metrika is a SaaS infrastructure player in the crypto space, one of the few parts in the industry getting funded at the moment.

Context: The crypto industry has slowed in recent months. Metrika is betting on the parts of the industry that appears to be forging ahead, says Andrikogiannopoulos.

  • Stablecoins and staking services are currently under fire, while the Fed has warned banks that they will need permission to hold crypto.
  • But financial institutions like Goldmans Sachs are still working on blockchain technology, with the bank launching a tokenization platform in January.
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