Agricultural blockchain startup GrainChain is a company that uses blockchain, the Internet of Things, and cloud technology to help manage logistics around the purchase and transportation of goods, and has raised $ 8.2 million in Series A financing.
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Overstock.com's blockchain accelerator division Medici Ventures invested $ 5 million in this round. Other investors include Eden Block and others. This brings the total amount of funds raised by GrainChain to $ 11.45 million.
Jonathan Johnson, CEO of Overstock and President of Medici Ventures, said
GrainChain has quietly become one of the most successful blockchain-based agricultural platforms on the market. GrainChain, while reducing the time and corruption associated with agricultural transactions, also reduces friction costs for farmers and buyers. It is a shining example of Medici Ventures' mission to democratize capital and eliminate Intermediaries and re-humanizing business technology.
GrainChain co-founder and CEO Luis Macias said:
"Medici Ventures has given unwavering support to our work, and our team is humbled and honored by it. Today ’s announcement proves the success of our partnership and allows us to continue product development and expansion to meet more Market demand in many countries. This also demonstrates their commitment to the goal of establishing a transparent and fair global agricultural market. For producers, bringing it closer to results. "
GrainChain's work is quite complicated, but the core of the company is to use blockchain to create smart contracts to help track the flow of goods from the farm to the supply chain (for example: corn, soybeans, black pepper, coffee). Once the goods reach the food processing department, GrainChain's platform will be used in conjunction with various services supporting IoT to grade the quality of each item and provide data near temperature and humidity when stored, while blockchain provides all Authentication.
After rating and determining the price, GrainChain's software will facilitate payments to farmers, truck drivers, and anyone involved in smart contracts.
GrainChain is one of many tech startups looking to make the food supply chain more transparent and efficient. In particular, blockchain has been used to track outbreaks of E. coli and seafood labels. For example, companies like AgShift are using computer vision and cloud technology to help with fair food grading. Varcode creates temperature-sensitive, blockchain-based barcodes to track the cold chain.
GrainChain said it currently has 2,500 participants in the United States, Mexico and Honduras. The company will use the new funding for product development and expansion to more countries.