Lockchain.ai, an AI-powered Blockchain Risk Management platform, announced its official launch from stealth to bring automated risk management solutions to traders, investors, and fund managers in the blockchain ecosystem. The company also announced it raised $4.6 million through a seed round led by Lerer Hippeau. The funding round included Arrington Capital, Valhalla Ventures, ARCA, RSE/Vayner, Sonic Boom Ventures, Alex Weiss of Clear Sky Capital, and Artico Search. White Star Capital joined in a subsequent funding cycle.
Lockchain.ai was founded by two experienced cybersecurity CEOs, Aidan Kehoe and Andrew Howard, and Matt Higgins, with seed funding led by Lerer Hippeau.
The company utilizes generative AI (GenAI) to bring speed, scalability, transparency, and security to the rapidly evolving digital asset management business. And Lockchain.ai’s SaaS platform offers always-on due diligence and risk monitoring for asset managers and traders seeking real-time security status of the assets they trade. This includes examining custodians and counterparties involved with the portfolio to provide a comprehensive assessment of risks and help traders make informed decisions at scale. Plus, Lockchain.ai enables asset managers to reconcile on- and off-chain balances, a key compliance concern as Bitcoin ETFs come online.
Lockchain.ai’s end-to-end use of GenAI is fundamental to the platform’s ability to consume and analyze thousands of data sources to deliver rapidly:
- Real-time view of risk status
- Instant notification of important on- and off-chain events that may impact their portfolio
- Actionable and straightforward insights on the potential effects of those events
- Predictive impact analysis of contagion risk
- And an automation engine to respond to events with pre-built playbooks and exit strategies (coming soon)
Lockchain.ai was launched last year 2023 by Andrew Howard, the former CEO of Kudelski Security, Aidan Kehoe, the former CEO of Skout Cybersecurity (acquired by Barracuda Networks in 2022), and Matt Higgins, the co-founder and CEO of RSE Ventures, Executive Fellow at Harvard Business School, and Guest Shark on Shark Tank. And the founding team determined a need in the market for a security solution to complement existing security and professional due diligence services. The team also founded the company with a simple mission: bring effective security and risk mitigation solutions to businesses interacting with blockchain technology and digital assets.
Lockchain.ai is based in Athens, Georgia with offices in New York City. And Lockchain.ai’s Board of Directors includes Steve Kokinos, former CEO of Algorand and Deneille Pemberton-Heard, Executive with the Diversified Search Group.
KEY QUOTES:
“All responsible financial services firms that want to engage with digital assets need a robust risk management process. And that process has to include tools that provide visibility into their counterparties, vendors and tokens, monitoring both off-chain and on-chain activity. Lockchain helps process a wealth of relevant and useful data and provides insights to risk management professionals, whether they are technical experts or not.”
– Jan van Eck, CEO of VanEck Associates
“Recent high-profile security challenges have highlighted the imperative for users in the blockchain and crypto space to grasp the actual risks involved. These users and traders need insights into how market events and emerging vulnerabilities might impact the integrity of their assets. In this dynamic environment, risk management emerges as a critical tool, providing insights and strategies to navigate uncertainties and safeguard investments.”
– Nick Percoco, Chief Security Officer at Kraken and advisor to Lockchain.ai
“Lockchain.ai’s emergence from stealth after a year of development marks a significant milestone in our mission to define a new category of security for blockchain assets. Our year-long endeavor has been fueled by a deep commitment to addressing the challenges faced by asset managers, traders, and hedge funds in navigating the complexities of this ever-evolving landscape with artificial intelligence driven risk management capabilities.”
– Andrew Howard, Co-founder and CEO of Lockchain.ai
“As we think about the various needs and pain across the sector, it was clear that security and risk management was a major problem. The platform that the team at Lockchain has built revolutionizes the way that firms do business across crypto and the larger blockchain ecosystem. With AI powering the platform, Lockchain.ai is now the only BRM product in the market with the requisite speed and results to keep clients safe in this sector.”
– Andrea Hippeau, Partner at Lerer Hippeau