A startup looking to tackle the problem of counterfeit luxury and consumer products, Chronicled, has secured $1.4 million in convertible note financing.
Leading the financing were Mandra Capital, Pantera Capital, Social Starts, and Seattle Seahawks running back Marshawn Lynch. Also contributing were Colbeck Capital, as well as the company’s four co-founders and other angel investors.
The startup looks to use what it refers to as “smart tags” or “smart labels” technology to prevent counterfeit brands from reaching the market. With a current focus on luxury consumer goods, specifically footwear, consumers would be able to verify if a product is authentic.
For example, “smart labels” are attached to shoes, using an open registry to track authenticity and ownership. The registry is powered by blockchain technology in an effort to ensure “openness and anonymity” of the platform. Chronicled has partnered with Identiv (NASDAQ:INVE), a security technology company publicly traded on the Nasdaq, for the development of microchips to be used for this purpose.
Sam Radocchia, co-founder and CPO, described:
“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.”
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It is estimated that billions of dollars are lost annually due to the counterfeiting of luxury goods. Dan Morehead, CEO of the bitcoin hedge fund Pantera Capital, commented, “Luxury goods provenance represents a multi-billion dollar sector where blockchain technology can add unprecedented value.”
Chronicled plans to launch its platform toward the end of this year, and to include 15,000 pairs on sneakers.
An unexpected investor
Also participating in the financing was Marshawn Lynch, drafted into the NFL in 2007. Nicknamed “Beast Mode” for his aggressive running style, he is on pace to become one of only 30 players in NFL history to exceed 10,000 career rushing yards.
A line of clothing with Lynch’s branding of “Beast Mode” is available for sale.
He is also known for his reluctance to speak with the media, for which he has been fined by the NFL. After one game last year, he answered nearly every question from reporters with “Yeah”. A few days later, he responded to nearly every reporter question with either “Thanks for asking” or “I appreciate you asking”.
Finance Magnates has inquired as to Lynch’s interest in the venture, but did not receive a response as of publishing time.