Blockchain origin startup Everledger has been placed into voluntary administration after an existing investor failed to go through with the 2nd tranche of their funding.

Founded in 2015 by former Queensland chief entrepreneur Leanne Kemp, the Brisbane-based technology company provides supply chain traceability using blockchain, artificial intelligence, intelligent labeling and the Internet of Things. They have been used to track and trace the provenance of everything from gemstones and jewelery to critical minerals, wine and spirits, luxury goods, fashion and more recently EV batteries.

The company was on track for profitability in the next 18 months and operates in several locations around the world, including China, Ireland, India and the US, which are unaffected by the Australian government.

The UK branch, Everledger Ltd, was voluntarily liquidated on April 20, while the controlling entity, Foreverhold Ltd, continues to operate.

Everledger has raised approximately $55 million in equity and grants in its 8-year history, most recently in 2021, including WeChat’s Chinese parent company Tencent, the UK government’s Future Fund, Rakuten, FPV, Fenbushi, and Bloomberg Beta . .

Last year, it received the first tranche of funding from an investor that failed to complete the second settlement in early 2023. The company then laid off local staff on March 31, before handing it over to administrators Steven Staatz and Ashley Leslie, of Vincents Chartered Accountants on April 24.

The creditors met for the first time on May 8. Startup Daily has reached out to Vincents for comment, but has not yet received a response. A 2nd meeting of creditors is expected at the end of May.

An example of Everledger’s blockchain supply chain tracking

Last October, the company held a successful, world’s first battery passport with auto giant Ford to track and ensure EV battery recycling. In 2021, Everledger, in collaboration with CSIRO Mineral Resources and Data61 received one Australian government grant of $3 million under the Blockchain Pilot Grants program to see how Blockchain technology can be used to track critical minerals such as nickel, cobalt, copper, and lithium. It was called one Technology pioneer by the World Economic Forum in 2018.

Leanne Kemp said she remains committed to the mission of the company she founded, along with many others.

“Despite having to make difficult decisions such as immediate layoffs, I emphasize that Everledger is not a cash-burning startup,” she said.

“Our capital utilization and operating footprint are in line with a controlled growth plan, and we have always planned for this round of investment to be our last round of external financing required before we can become profitable.”

Kemp said what happened to Everledger is an example of the harsh risk realities faced by start-up companies and entrepreneurs.

“I am strengthened by the support of our customers who have expressed their belief in our company and its importance to their success,” she said.

“I remain optimistic about the future and confident that the problem we are solving for the industry and customers is worth dedicated energy, funding and effort.”