Ledger (startup)

Ledger is a french start-up which designs and markets cryptocurrency wallets for individuals and businesses. Among its products is the Ledger Nano S, which has sold more than 1.5 million units worldwide^[1]. The start-up employs approximately 200 people and has sites in Paris, Vierzon, New York City and Hong Kong^[2].

In 2014, Éric Larchevêque creates Ledger with various collaborators, among which is Thomas France^[3].

The first product to be marketed is the Ledger Blue, a touch pad that allows the user to send or receive cryptocurrency payments and to monitor their accounts^[4]. Since the tablet is expensive to produce, and therefore high-end, another more affordable model is launched from it: the Ledger Nano S, a device the size of a USB key that allows the same actions to be performed. The main cryptocurrencies are supported at launch, including Bitcoin, Ethereum or Ripple^[5].

The technology used is developed in-house, in particular with an embedded operating system designed for smart cards called "BOLOS" for Blockchain Open Ledger Operating System. This allows the programmed functions to be isolated and therefore avoids any external intrusion.

In March 2017, Ledger raises €7 million in a roundtable discussion. It is back then one of the largest financings carried out in the blockchain sector on the European continent.^[6]

The start-up is benefiting from the cryptocurrency bubble, with Bitcoin rising from $1000 to nearly $20,000 in 2017 and experiencing very strong economic growth in the second half of 2017, selling one million Nano S and exceeding 10 million monthly revenues. The sales turnover for the year 2017 is 45 million euros.^[7]

In 2018, it was the third largest French start-up to raise funds thanks to a $75 million fundraising campaign in January. It then reaches the scale-up category.^[8] These investments come from large venture capital funds such as FirstMark Capital or Draper Triangle^{[9] [10]}. The company then announces that it wants to use this financing for its international development and its research and development (R&D).

However, the subsequent fall in the Bitcoin price (from $20,000 to less than $4,000 in 2018) has a strong impact on market activity and product sales. In addition, a proportion of the start-up's jobs are at risk^[11]. This is due to a previous over-optimistic recruitment policy that planned an IPO by 2020.^[12]

Despite this difficult context, Ledger is investing 10 million euros in the construction of a 4,000 square metre assembly plant in Vierzon: the "LedgerPlex". The objective is thus to relocate its production (previously carried out in China) and employ up to 150 employees in the Cher department^[13].

In early 2019, at the Consumer Electronics Show in Las Vegas, Ledger announced a new product that will be released in March of the same year: the Ledger Nano X. This consists of an evolution of the Nano S, allowing a Bluetooth connection, having a larger screen and allowing to store more cryptocurrencies^[14].Finally, a technical problem will delay the availability of the product and it will only be available in May 2019^[15].

In the first half of 2019, Bitcoin grew by 40%, which implies a return to higher sales. The company then announces that it is once again in the recruitment phase, wishing to take advantage of a now more mature market^{[16] [17]}.

In April 2019, Samsung officially announced that it had invested €2.6 million in Ledger; the valuation of the start-up would reach €260 million^[18]. Bruno Le Maire, French Minister of Economy and Finance, comments on Ledger's situation on 15 April 2019: "Ledger has everything to become our first French blockchain unicorn very quickly"^[19].

At the same time, large hacks of cryptocurrency exchanges, such as Binance's (the equivalent of $40 million stolen in Bitcoin), have increased sales of physical cryptocurrency wallets due to the growing concern of users^[20].

Initially created with business to consumer (B2C) in mind, Ledger is seeking to diversify when cryptocurrencies become popular by integrating its operating system with business-oriented solutions.

In 2017, the start-up launched Ledger Vault^{[21] [22]} a solution for companies, financial institutions (Hedge Funds, Family office) or currency trading platforms^[23] for the management of cryptocurrency assets. As this activity is less correlated to the evolution of cryptocurrency prices, it is considered as a way to "generate recurring revenues and provide stability to the company"^[24] by Éric Larchevêque.

This solution comes with the international development of the start-up and the opening of offices in New York and Hong Kong as a way to be closer geographically to other major international financial centres.^{[25] [26]}

Ledger is also entering the Internet of Things sector (IoT) by signing a partnership with Engie for the development of connected boxes to certify the quantities of energy produced by renewable energy sources using the blockchain^[27].

Éric Larchevêque considers IoT to be the sector with the most potential in the coming years in an interview with the French newspaper Entreprendre^[28].

• Start-up of the year 2018 in Ile de France^[29]
• CES Innovation Honoree Award in 2019^[30]

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