ConsenSys Eyes New Funding As It Looks For $200 Million From New Investors
Ethereum development studio ConsenSys is reportedly eyeing a fresh boost from a new funding round.
The startup, co-founded by Joe Lubin, is said to be looking for new external investors that will help it raise $200 million. According to a news article in The Information, the Brooklyn-based firm’s funding will bring its valuation to $1 billion.
As per The Information article, ConsenSys has been eyeing investors from China. The U.S. venture firm purported to have pitched the Chinese investor community with materials that claim the company’s projected revenue for 2019 is expected to be $50 million.
The development studio is said to be targeting revenues from contracts entered into with major enterprises as well as government clients.
The report appears to confirm earlier allegations. In December last year, Brazil’s National Social Development Bank revealed that it was talking to ConsenSys representatives.
The crypto downturn of 2018 saw ConsenSys hit headlines earlier this year after it announced it would cut projects and reduce its workforce. Previously, the startup received most of its funding from the personal wealth of its billionaire founder.
At one point, the firm was home to a reported 1,200 employees. However, the meltdown in crypto prices saw ethereum’s ether prices plummet massively.
In the end, ConsenSys announced layoffs, first rumored to be close to 50 percent of the workforce. The firm however released about 13 percent of the workers.
At the same time, the company launched a restructuring process that culminated in its “ConsenSys 2.0” project.
The new initiative was premised on the realization that the firm would do well to engage a whole host of new investors, particularly forming partnerships that bring onboard external investors.
After the initial layoffs, some of the former employees have since revealed that the startup is eyeing even more job cuts over the current year. That could as well be in line with further streamlining measures after an alleged dismal 2018.
According to The Information, ConsenSys’ revenues for last year amounted to a paltry $21 million. While these figures are quite small, the foregoing is that the revenue and how it connects to the many startups and blockchain apps in development remains clouded.
Apparently, several of these startups now prefer raising their capital as independent entities. Going forward, the key question would be whether the company will live up to its billing as Ethereum’s biggest development studio.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.