Fidelity National Financial Inc. signage is displayed at the company's office in Boston, ... [+]
UK-based blockchain startup Everledger, which began as a platform using blockchain to verify the authenticity of diamonds, has attracted investment led by Chinese multinational investment holding conglomerate but also backed by American multinational financial services corporation Fidelity, and Japanse electronic commerce and Internet company, Rakuten.
The $20 million in a Series A was announced by the firm which reiterated its commitment to transparency in supply chains through the use of blockchain technology. It also added that Tencent had now joined its board as part of the investment deal.
Others who took part in the Series A also include Bloomberg Beta, Graphene Ventures and Vickers Venture Partners. Everledger describes itself as an "independent technology company helping businesses surface and converge asset information, using a symphony of secure technologies, including blockchain, artificial intelligence, intelligent labeling, and Internet of Things.
Furthermore, they state their purpose is to "contribute greater clarity and confidence in marketplaces where transparency matters most."
Substantial interest
The funding appears to be reasonably substantial, and from critical figures that are emerging in the enterprise blockchain space. Tencent is a major player in the Chinese economy with the company purported to be one of the first to receive the much-anticipated Chinese central bank cryptocurrency when it launches.
More so, the fact that the funding also sees Tencent joining the startup's board indicates that there is a severe undertaking from the world's sixth-largest internet company by revenue to boost Everledger and its endeavors.
More so, The likes of Fidelity and Rakuten have become quite well-established names across the enterprise blockchain space. There have been rumors circling the company for some time now that they are building a cryptocurrency trading desk, but on the more evidential side of things, they also funded $16 million in Series A for Fireblocks - a startup that helps institutions safely transfer coins between different wallets and exchanges.
Rakuten has also been garnering much interest in the blockchain sphere, as well as more recently the cryptocurrency space. The Japanese e-commerce giant Rakuten, which has a market capitalization of over $12.5 billion, revealed a deal to acquire domestic crypto exchange Everybody's Bitcoin in late August.
Everledger is no stranger to being courted by major enterprises, however. Back in 2016, the firm took part in an accelerator program run by Mastercard as it looked to grow its scope to other areas where provenance and transparency are of crucial importance such as minerals, luxury goods wine and art.
Fitting in
There is an ever-growing understanding that enterprises and startups in the blockchain space have a lot that they can benefit from each other. The likes of Telefonica and others are driving accelerator programs with the hopes of unearthing the next big thing, but for the startups, it is equally essential to be aligned with significant companies.
Leanne Kemp, founder, and CEO of Everledger, said the following while also announcing a use-case example the two will be collaborating on:
"Everledger and Tencent are a natural fit. We share strategic synergies, including several solutions that are part of their ecosystem. As an example, we will launch the world's first WeChat Mini Program for blockchain-enabled diamonds, uniting key stakeholders in the diamond value chain, which aims to empower WeChat users to buy jewelry with more transparency and security. In particular, we are excited to see how this new partnership with Tencent will help to strengthen and extend our developments in China and contribute to other potential partnerships."
