Former Qld chief entrepreneur’s blockchain startup closes shop

Blockchain technology company, Everledger, has entered voluntary administration after expected investor funding fell through.

Everledger was founded in 2015 by former Queensland CEO Leanne Kemp. It originally used blockchain technology to trace the origins of diamonds and other precious materials. It later expanded to track luxury items such as high-end fashion, art and wine.

Over the past eight years, the Brisbane-based company has raised over $51.7 million in external investment, as well as $3 million from the federal government’s 2021 blockchain pilot grant.

One of the most prestigious backers was Tencent, owner of social media giant WeChat. The company has engaged in extensive foreign investments, including in the video game industry. Tencent has a minority stake in Epic Games, the developers behind it Fortnite. It also acquired a majority stake in Riot Games – the team behind it League of Legends – back in 2011.

In 2020, Tencent led Everledger’s Series A round with an investment of $20 million. according to AFRit also matched USD 3.5 million secured through the UK government’s Future Fund in 2021.

Other previous investors include GMP Securities, Rakuten and Fenbushi.

But despite the previous impressive increases, the latest round of funding from an undisclosed investor failed.

according to AFREverledger’s holding company, which is based in the UK, is not currently in administration.

Company staff were notified of the redundancies on 31 March and Vincents Chartered Accounts were appointed administrators on 24 April.

The first creditors’ meeting will be held today.

While blockchain companies were all the rage a few years ago, securing large investments and coverage, they have fallen on harder times in the past 18 months as belts have tightened.

The collapse of FTX certainly hasn’t helped when it comes to suspicions surrounding the blockchain and cryptocurrency sectors. Locally, cryptocurrency ‘Earn’ products from Swyftx, Finder and Block Earner have come under ASIC’s regulatory hammer since late December.

This is also just the latest in an increasingly long line of Australian startups closing up shop. In the past few weeks alone, we’ve seen the collapse of Milkrun, Providoor, CoLab and BoozeBud.