The labels will be tracked and encoded on a distributed public ledger called the blockchain to create a transparent record of authenticity, ownership and provenance for both buyers and sellers. Through the partnership with Identiv and the newly raised funds, the startup will continue the development of encrypted microchips inside the smart labels.

"We are delighted to be joined by investors with deep expertise in social platforms, cryptography, and the burgeoning Internet of Things, as well as pop culture, art, sports, and fashion," said Ryan Orr, the company's founder and CEO.

The startup plans to target the secondary market for luxury goods and collectibles, which currently exceeds US$1 trillion in transactions, according to Forbes, in which the market for collectible sneakers accounts for US$1 billion of the market.