VinX Blockchain Wine Tracking Startup Secures Overstock’s Medici Ventures 7 Figure Investment
Vinx, the Firm Tackling Fake Wine With Blockchain Secures Seven-Figure Investment
VinX, the startup that is tackling fake wine with blockchain has secured a seven-figure investment from Medici Ventures, the blockchain accelerator and subsidiary of Overstock.com.
The startup is working on a supply chain platform for trading wine futures by putting up these futures as tokens on a blockchain to be able to follow the wine to its origin, and drastically reduce the rise in fakes that bedevils the industry that is worth $302 billion and seeing up to $3 billion paid by customers for counterfeited products.
With the VinX solution, connoisseurs and collectors can purchase a vintage while it's still in the barrel, a year or two before it's bottled and released on the market.
Jonathan Johnson, Medici Ventures president, said his company’s investment gives it 20 percent stake in VinX.
Johnson said that Medici was attracted to the startup's blockchain use case, explaining:
“There are a lot of middlemen in the wine industry that can be eliminated with blockchain, there is a lot of problems with counterfeits. We also think this technology is democratizing the purchase of wine.”
Like VinX, Hainvine, a Swedish startup with a similar vision, raised $3 million this summer, and Everledger, known for tracking the provenance of diamonds, claimed two years ago to have registered the first-ever bottle of wine on a shared ledger.
VinX was founded by Jacob Ner-David, a co-founder and chairman of Jezreel Valley Winery in Israel. He also has experience working at tech startups.
In a statement, Ner-David said his company’s mission aligns with that of Overstock, the e-commerce giant founded in 1997 by Patrick Byrne, who later became a prominent evangelist for bitcoin and blockchain technology in general.
By “bringing consumers in direct contact with producers early in the wine-making cycle”, Ner-David said,
“we are riding the wave of direct-to-consumer, which Overstock has been a leader of for almost 20 years.”