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Australian Blockchain Firm Everledger Files for Bankruptcy

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Australian Blockchain Firm Everledger Files for Bankruptcy

  • On March 31, all Everledger workers were given notice of layoff.
  • Vincents Chartered Accountants were appointed as administrators on April 24.

After failing to secure funds from an unnamed investor, Australian blockchain startup Everledger has apparently filed for bankruptcy. According to the AFR on May 8, Everledger, a company that utilizes blockchain technology to trace the origin of diamonds and other items, was unable to close its most recent investment round.

Due to financial difficulties, Everledger was subsequently put into voluntary administration. On March 31, all Everledger workers were given notice of layoff, and on April 24, Vincents Chartered Accountants were appointed as administrators. May 8 was to be the first Creditors’ Meeting.

Funding Round Did Not Matieralize

Moreover, company management, as stated by Everledger founder Leanne Kemp, felt compelled to take this action to safeguard shareholder interests.

Kemp stated:

“The second tranche of funding due to Everledger did not materialize, and subsequently, we understand that there are external reasons and pressures on this investor, which has meant Everledger was placed in a difficult and unexpected position.”

The founder also said that one of the most crucial choices was the rapid layoff of workers and the appointment of administrators to run the company until its issues were settled. According to Kemp, Everledger timed its most recent investment with the last round of external capital needed before reaching profitability.

Despite having backing from significant investors including the Australian government and the Chinese internet behemoth Tencent, Everledger has entered bankruptcy procedures.

Tencent contributed $20 million to Everledger’s Series A round in 2019, making it the round’s lead investor. The Future Fund of the United Kingdom Government reportedly granted $3.5 million to Everledger in 2021. Everledger allegedly raised $51.7 million from outside investors during the last eight years.

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