Everledger, the blockchain startup from Queensland’s former chief entrepreneur, enters administration

Blockchain technology company, Everledger, has gone into voluntary administration after expected investor funding failed to materialise.

Everledger was founded in 2015 by former Queensland chief entrepreneur, Leanne Kemp. It originally utilised blockchain technology to trace the provenance 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 blockchain pilot grant in 2021.

One of its 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 Fortnite. It also acquired a majority equity interest in Riot Games — the team behind League of Legends — back in 2011.

In 2020, Tencent led Everledger’s Series A round with a $US 20 million investment. According to the AFR, it also matched US$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 previously impressive raises, the latest funding round from an undisclosed investor failed to happen.

According to the AFR, Everledger’s holding company, which is based in the UK, isn’t currently in administration.

Company employees were given redundancy notices on March 31, with Vincents Chartered Accounts being appointed as administrators on April 24.

The first creditor’s 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 over the past 18 months as belts have tightened.

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

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