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Champ Titles Raised $18M from Point72 Ventures
Champ Titles Raised $18M from Point72 Ventures

Architect Partners was the exclusive Financial Advisor to Champ Titles.

Transaction Overview

On March 27, 2024, Cleveland-based digital title and registration platform Champ Titles announced an $18 million Series C equity round led by Point72 Ventures with participation by existing investors.

Company Description

Champ Titles provides a digital title and registration suite to streamline the vehicle titling process. Their platform enables the creation of legal, digital titles for easy transfer and verification, serving insurance carriers, lenders, state governments, auto dealers, and owners. Stakeholders, including state motor vehicle departments, lenders, and vehicle owners, benefit from a unified and transparent system, where all information is readily accessible and transaction times are markedly reduced. The governance of the digital platform is established through clear guidelines, ensuring all parties adhere to the updated processes and regulations.

Champ Titles’ success is measured by the elimination of more than 5 million pieces of paper annually on average per state; a reduction in processing time from 40-60 days to a matter of hours; increased productivity of DMV title clerks processing more than five times as many titles per day; and the improved experience for consumers in each state that has adopted Champ Titles’ solutions. Over the last twelve months, the company has successfully onboarded new states including New Jersey, Kentucky, and Illinois, and expanded its relationship with West Virginia by creating the first National Digital Titling Clearinghouse (NDTC). Through these efforts, the company has grown rapidly with revenue increasing by more than 300% year over year. 

Founded in 2018 by CEO, Shane Bigelow, the company now has 63 employees and is headquartered in Cleveland, Ohio. 

Funding

In this Series C funding round, Champ Titles raised $18M from Point72 Ventures and existing investors including W.R. Berkley Corporation, Eos Venture Partners, Guidewire Software, and Rev1 Ventures, bringing the total amount raised since inception to $45M. 

In the prior Series B round, Champ Titles raised $13M from Guidewire Software, Eos Venture Partners, and Ally Ventures.

Before that, Champ Titles raised $13.5M in 2021 in a Series A. Emergents, now Architect Partners, served as the exclusive Financial Advisor for that financing. 

Competition

Champ Titles’ biggest competitors are existing state DMVs deciding to be a software company and developing solutions on their own or via large systems developers.  However, they also compete with other digital title networks such as Cario and Oxhead Alpha/Tezos. In addition, technology-enabled DMV solutions such as Fast Enterprises are seen as competitive but don’t offer the same efficacy.

 

Architect Partners’ Perspective

Champ Titles’ SaaS-based solutions present a compelling example of blockchain-enabled infrastructure solving real-world problems.  By focusing on the needs and pain points of legacy auto title, registration, and lien processing, Champ has leveraged the power of blockchain to transform critical government services.  The result is exponentially accelerated processing time for DMV constituents, with improved accuracy and reduced cost.  Yet Champ’s solutions capture many key benefits of on-chain data processing – which include trust, transparency, data integrity, security, and efficiency – without users even being aware of their blockchain foundations.  

While much attention is focused on recent resilience in crypto asset prices, we believe 2024 will see significant growth in non-speculative enterprise applications for distributed ledger technology.  Champ’s successful raise demonstrates investor interest in practical and scalable solutions to real-world problems.

Alerts

Chainalysis Acquires Alterya for an Estimated $150M

Eric Risley
January 19th, 2025
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Transaction Overview

On January 13, 2025, Chainalysis, a blockchain data platform specializing in cryptocurrency investigations, compliance, and risk management solutions, announced its acquisition of Alterya—a fintech platform focused on protecting financial institutions and crypto service providers from authorized push-payment (APP) fraud and scams—for a rumored $150 million.

 

Target: Alterya

Alterya is a B2B fintech company specializing in AI-powered threat intelligence solutions for the financial services industry. Its services focus on preventing authorized push-payment (APP) fraud by blocking transactions to identified scammers and leveraging high-fidelity data to detect potential money mules and other fraudulent activities.

 

With expertise in using AI to combat GenAI-related scams, Alterya has identified over $10 billion sent to scams and actively works to protect more than 100 million end users. A leader in the cybersecurity sector, Alterya partners with companies such as Block, Binance, and Coinbase.

 

Founded in 2022 by Elad Fouks and Shahaf Gonen, Alterya is headquartered in Tel Aviv, Israel, and employs over 20 team members. The company raised $6.6 million in seed funding from Bettermode, Battery Ventures, and Tribe Capital, with additional participation from Liquid 2 Ventures, NFX, Nyca Partners, and FJ Labs.

 

Buyer: Chainalysis

Chainalysis Inc., founded in 2014 and headquartered in New York City, is the global leader in blockchain data and analytics. The company supports over 1,000 government agencies, financial institutions, and cryptocurrency businesses across more than 70 countries. Chainalysis plays a pivotal role in promoting transparency and trust within the cryptocurrency ecosystem, with its solutions aiding in the recovery of over $10 billion in stolen cryptocurrency and the identification of major illicit financial networks.

 

Its flagship products include Chainalysis Know Your Transaction (KYT), a real-time compliance solution that processes billions of dollars in cryptocurrency transactions daily, ensuring adherence to global regulations. Chainalysis Reactor, its investigative software, links transactions to real-world entities, enabling law enforcement to dismantle criminal networks. Additionally, Chainalysis Kryptos provides financial institutions with advanced risk assessment tools for cryptocurrency investments. Beyond its software offerings, Chainalysis delivers forensic services that have supported investigations into ransomware, fraud, and money laundering.

 

Backed by prominent investors such as Accel, Benchmark, GIC, and Paradigm, Chainalysis has raised over $500 million to expand its capabilities. With offices around the world, it continues to be a driving force in combating financial crimes and shaping the future of blockchain technology.

 

Transaction Parameters

Chainalysis announced the acquisition of Alterya for an undisclosed amount, however, rumors estimate the valuation at $150 million. 

 

Previous comparable transactions include: Hexagon | Chainalysis, Blowfish | Phantom, Edge Intelligence | BlockX Capital, Wallet Guard | ConsenSys, Staging Labs | Markle Science

 

Strategic Rationale

Chainalysis acquired Alterya to expand its fraud prevention capabilities and enhance its blockchain data platform. Alterya’s AI-powered fraud detection system identifies scammers before they target victims, enabling real-time fraud protection and strengthening KYC processes for exchanges, blockchains, and wallet providers. By monitoring over $8 billion in transactions monthly, Alterya has reduced fraud by up to 60% for major exchanges like Binance and Coinbase, protecting 100 million users. Its solutions also reduce disputes, improve efficiency, and address the growing threat of generative AI, which allows scammers to create high-quality fake identities and content to bypass traditional protections. Notably, 85% of scams now involve fully verified accounts.

 

This acquisition builds on Chainalysis’s recent purchase of Hexagate by extending its focus from blockchain security to broader payment fraud prevention. While Hexagate specialized in securing Web3 ecosystems, Alterya brings expertise in detecting scams across both crypto and fiat systems. Together, these technologies strengthen fraud detection across digital payment networks, creating a more robust platform to combat illicit financial activities.

 

Architect Partners’ Observations

Chainalysis is executing on their strategic shift from post facto understanding fraud and compliance breaches to focus on preventing them. This is an incredibly deep set of opportunities, which as the traditional IT security markets have proven, only persist and get larger. Kudos to Chainalysis!

 

Sources 

PitchBook, Press Release