Everledger’s Failed Funding Round
The Australian blockchain company Everledger has reportedly entered insolvency proceedings after failing to raise new funding from an undisclosed investor. The company, which uses blockchain technology to track the provenance of diamonds and other goods, was unable to secure the necessary funds to continue its operations.
Voluntary Administration and Layoffs
Subsequently, Everledger was quietly placed into voluntary administration as the firm could not pay its debts. All Everledger employees were given layoff notices on March 31, with Vincents Chartered Accountants being appointed as administrators on April 24. The first meeting of creditors was scheduled for May 8.
Protecting Shareholders’ Interests
According to Everledger founder Leanne Kemp, the company’s management was forced to take this decision to protect the interests of shareholders. The failure to secure the second tranche of funding put the company in a difficult and unexpected position, leading to the redundancy of employees and the appointment of administrators.
Major Investors Unable to Save Everledger
Despite being backed by major investors such as the Australian government and Chinese internet giant Tencent, Everledger was unable to avoid insolvency. Tencent led the company’s Series A round with a $20 million investment in 2019, and Everledger secured an additional $3.5 million from the United Kingdom Government’s Future Fund in 2021.
Blockchain Supply Chain Tracking: A Mixed Outlook
While some companies, including Maersk and IBM, have terminated their blockchain supply chain tracking products due to a lack of global industry collaboration, the concept remains popular in certain areas. Hong Kong-based Global Shipping Business Network continues to build blockchain-based supply chain products and remains optimistic about the technology’s long-term potential in the logistics industry.
In Conclusion: Everledger’s Insolvency and the Future of Blockchain Supply Chain Tracking
The insolvency of Everledger, a pioneering company in the blockchain-based supply chain tracking industry, highlights the challenges and uncertainties that such companies face in securing funding and navigating the market. Despite backing from major investors like Tencent, the Australian government, and the UK’s Future Fund, Everledger ultimately succumbed to a failed funding round. While some firms have abandoned blockchain supply chain tracking initiatives due to collaboration hurdles, others, such as Hong Kong’s Global Shipping Business Network, remain confident in the technology’s potential. The future of the industry will depend on the ability of companies to adapt to market challenges and secure the necessary support to drive innovation and collaboration in this promising sector.