Australian blockchain firm Everledger has reportedly entered bankruptcy proceedings after failing to raise new funding from undisclosed investors.
Everledger, which uses blockchain to track the provenance of diamonds and other commodities, has failed to close its latest funding round, AFR reported on May 8.
Everledger was then quietly placed into voluntary administration due to its inability to pay its debts. All Everledger employees were notified of layoffs on March 31, and Vincents Chartered Accountants were named administrators on April 24. The first meeting of creditors is scheduled for May 8. According to Everledger founder Leanne Kemp, the company's management was forced to make this decision to protect the interests of shareholders.
“Everledger's second tranche of funding didn't materialize, and subsequently, we learned that there were external reasons and pressures from that investor, which meant that Everledger was in a difficult and unexpected position,” Kemp said. One of the crucial decisions, the founder added, was to lay off staff immediately and put the company in control of managers after the transaction was completed. Kemp went on to say that Everledger plans to make the latest investment around the last round of external financing needed before profitability. no 't say Everledger is a 'cash burning' startup," she said, adding:
“Certainly, our use of capital and operating footprint is exactly in line with the direction of the board under the controlled growth plan. This is not a company that expands too quickly or takes venture capital and burns down in 18 months.” Everledger did not immediately respond to Cointelegraph's request for comment. Everledger entered bankruptcy despite having the backing of major investors including the Australian government and Chinese internet giant Tencent.
In 2019, Tencent led Everledger's Series A financing with a $20 million investment. Everledger also received $3.5 million in 2021 from the UK government's Future Fund, according to the AFR. Over the past eight years, Everledger has reportedly raised $51.7 mill ion in outside investment. Founded in 2015, Everledger is one of the world's leading companies in the world's leading blockchain-based supply chain tracking platform. Some companies, including Danish logistics company Maersk and US tech firm IBM, have discontinued their blockchain supply chain tracking products, citing a lack of "global industry collaboration."
Despite the closure of major industries, the concept of a blockchain-based supply chain platform is still thriving in some parts of the world. The global shipping business network headquartered in Hong Kong continues to build blockchain-based supply chain products, and is optimistic about blockchain as an important logistics tool for a long time.
