New York-based blockchain company ConsenSys is reportedly seeking investors to raise $200 million, technology media outlet The Information reported on April 15.
According to sources familiar with the matter, ConsenSys is trying to attract outside investors to raise $200 million. The company’s executives reportedly talked to investors in Hong Kong and South Korea, however as of early April ConsenSys had purportedly not yet found a lead investor.
The Information cited fundraising documents, revealing that ConsenSys closed 2018 with just $21 million in revenue coming mostly from its enterprise consulting business. Per the documents, ConsenSys is planning its revenue to be more than $50 million in 2019, with around $40 million coming from its services business.
The documents reportedly reveal that ConsenSys has a considerable share in blockchain companies that it has incubated. ConsenSys has reportedly been seeking a valuation of at least $1 billion, which The Information reports is too high, given the company’s revenue and investors.
Last December, anonymous sources stated that ConsenSys could lay off up to 60 percent of its staff as the blockchain space had become more competitive and “crowded.
” The company was reportedly spinning out startups it had previously backed, some of them without financial support.Later in January, ConsenSys’ Executive Director of Enterprise and Social Impact Vanessa Grellet told Cointelegraph that the layoffs did not exceed 13% of staff.
All teams at the firm were purportedly reevaluated including technical and non-technical staff.
When asked about signs of crisis in the blockchain industry and criticism of ConsenSys not being able to deliver on its promises, Grellet said that she still sees huge interest in blockchain technology.
According to sources familiar with the matter, ConsenSys is trying to attract outside investors to raise $200 million. The company’s executives reportedly talked to investors in Hong Kong and South Korea, however as of early April ConsenSys had purportedly not yet found a lead investor.
The Information cited fundraising documents, revealing that ConsenSys closed 2018 with just $21 million in revenue coming mostly from its enterprise consulting business. Per the documents, ConsenSys is planning its revenue to be more than $50 million in 2019, with around $40 million coming from its services business.
The documents reportedly reveal that ConsenSys has a considerable share in blockchain companies that it has incubated. ConsenSys has reportedly been seeking a valuation of at least $1 billion, which The Information reports is too high, given the company’s revenue and investors.
Last December, anonymous sources stated that ConsenSys could lay off up to 60 percent of its staff as the blockchain space had become more competitive and “crowded.
” The company was reportedly spinning out startups it had previously backed, some of them without financial support.Later in January, ConsenSys’ Executive Director of Enterprise and Social Impact Vanessa Grellet told Cointelegraph that the layoffs did not exceed 13% of staff.
All teams at the firm were purportedly reevaluated including technical and non-technical staff.
When asked about signs of crisis in the blockchain industry and criticism of ConsenSys not being able to deliver on its promises, Grellet said that she still sees huge interest in blockchain technology.
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Francisco Gimeno - BC Analyst Will ConsenSys exist in 2030? Or will be like those Internet pre bubble companies which died by being successful? Incubators like the one offered by this company are very useful now and for the foreseen future. But are they really providing solutions in an ecosystem which is becoming more crowded and complicated? We believe ConsenSys is going to transform itself to be leaner in order to be more competitive and realistic.