Overstock’s investment fund Medici Ventures has purchased a $2.5 million equity in GrainChain, a blockchain-based payment solution for farms.
According to a press release that was released recently, the sale has granted Medici Ventures ten percent ownership in the company, and the option to double that in the future with a second acquisition round.
The funds will reportedly be used to fund GrainChain’s market share expansion in Central and South America.
A little bit about GrainChain
GrainChain was founded in 2013 with a goal that aims to automate the calculation and documentation of agricultural yield.
The platform will use this data for its settlement system, which will allow grain producers, buyers, and sellers to create smart contracts to secure funds throughout the grain transaction process.
One of the ways that GrainChain ensures accuracy of the data is to leverage IoT devices to avoid errors and eliminate human error as much as possible.
The system is currently in place in the United States and Mexico, with Latin America expected to follow shortly. As mentioned above, the recent funding will be used for expansion.
The CEO of GrainChain mentioned in the press:
“We are making the grain transaction extremely efficient, transparent, safe and secure, and we’re giving not only the farmers but also the buyers a safe marketplace to do business in. At the end of the day, we’re just leveling the playing field for the farmer, giving them much more power and control over the selling process.”
Medici lost $39 million through the first nine months of 2018, following a $22 million loss in 2017. (All told, Overstock lost $163.7 million through the first nine months of 2018.) It seems like they are looking to invest into more IoT related blockchain projects. It’ll be nice to see what the returns are from these type of investments.