A San Francisco-based technology company Chronicled Inc. has raised US$1.4 million in a funding round participated by Pantera Capital, Mandra Capital, Seattle Seahawks RB Marshawn Lynch and several angel investors to build a consumer authentication platform to eliminate counterfeit goods using smart labels.
The labels will be tracked and encoded on a distributed public ledger called the blockchain to create a transparent record of authenticity, ownership and provenance for both buyers and sellers. Through the partnership with Identiv and the newly raised funds, the startup will continue the development of encrypted microchips inside the smart labels.
"We are delighted to be joined by investors with deep expertise in social platforms, cryptography, and the burgeoning Internet of Things, as well as pop culture, art, sports, and fashion,” said Ryan Orr, the company's founder and CEO.
The startup plans to target the secondary market for luxury goods and collectibles, which currently exceeds US$1 trillion in transactions, according to Forbes, in which the market for collectible sneakers accounts for US$1 billion of the market.
"The secondary market for luxury goods and collectibles is flooded with fakes, resulting in illiquidity and daunting consumer risk,” explained Dan Morehead, CEO of Pantera Capital. “Chronicled's technology has the potential to make the market safe and efficient, while giving users a better experience.”
“Luxury goods provenance represents a multi-billion dollar sector where blockchain technology can add unprecedented value.”
Chronicled Inc. will officially launch its platform in selected U.S. cities in fall of 2015, with over 15,000 pairs of sneakers secured. The platform will be availed for collectors, retails and brands, to sell, purchase and trade authentic sneaker collectibles on the blockchain.
Our technology lets consumers know if their products are authentic at the tap of a mobile phone. It also provides brands and retailers with a new platform to engage with the consumer beyond the point of sale and to issue limited edition products,” said Sam Radocchia, co-founder and CPO
- Founder and CEO of Chronicled Inc, Ryan Orr and Sam Radocchia, co-founder and CPO