By Hadassa Kalatizadeh
Chainalysis, a cryptocurrency and blockchain startup, has signed a leased to take on 40,000-square-feet of office space in Manhattan’s Flatiron District.
As reported by Crain’s NY, the startup, privately valued at $4 billion, has inked a sublease at 114 Fifth Ave on West 17th street. Chainalysis will occupy two floors at the 18-story building, and expects to have more than 200 employees. The building, owned by L&L Holding, boasts a tenant list which includes Capital One, Mastercard, and First Look Media. The new headquarters for the startup, which is now the fourth highest-valued unicorn in the city, is roughly three times bigger than Chainalysis’ current office in Union Square.
The company, founded by Michael Gronager, Jonathan Levin and Jan Moller in 2014, provides blockchain compliance and investigative software for government and financial institutions, with the mission of making cryptocurrencies safe and useful, while limiting money laundering. The firm has raised $300 million from investors in the past six months.
New York City has attracted record levels of venture-capital investment for tech startups in the first half of 2021. The Chainalysis lease is just another hint as to some of the investment funds now rolling into the commercial real estate market, right on time for its recovery.
Chainalysis Chief Executive Michael Gronager said the firm is “doubling down” on New York. He said the company hopes to move into the new space by October, though it will be closely monitoring public health guidance. “Many of our new colleagues started off working remotely,” Gronager said, “so we’re excited to finally meet them face-to-face in our new office.”
Marc Shapses, vice chairman at Savills, helped represent Chainalysis in the deal, along with Seth Wasserman and Roi Shleifer from Savills. As per Crain’s, Shapses said the sublease was short-term, which is a popular option for tech startups returning to the office market. Most firms would rather not to commit to a lease for more than four years. “Often among the most important things for growing tech firms are flexible terms,” Shapses said. “They don’t want to be locked in too long, because a company in growth mode may double in head count in two or three years.”
The sub-lessor in the deal, which has not been named, was represented by brokers Ken Ruderman and Gary Stein, also of Savills.