As surprising as it may seem, ConsenSys is looking for financial help urgently. $200 million in funding sought by Consensys.
The Information reported on Monday, that Ethereum co-founder, Joe Lubin’s Brooklyn-based venture studio is now looking for funds itself. The company’s goal is to raise $200 million from external investors, at a valuation of $1 billion.
The Brazilian National Social Development Bank confirmed last December that it was in talks with ConsenSys. ConsenSys projects to earn $50 million in revenue this year, primarily from contracts with enterprise and government clients. The Information reports that the firm is pitching Chinese investors with materials detailing how the revenue will come in.
Following a late-2018 re-vamping named “ConsenSys 2.0,” it became evident that partnering with traditional, external investors investors was a necessity. Until recently, the company was supported by Lubin’s own fortune and had a workforce of 1,200 individuals in 2018. At the point when the cost of ethereum plunged, after the 2017 token boom failed, ConsenSys laid off 13 percent of its staff.
A few previous staff members revealed in January 2019 that more cuts were seemingly within easy reach.
A few of ConsenSys’s ventures are trying to raise capital all alone as autonomous new companies, various sources confided to CoinDesk. The Information reported that the amount brought in by ConsenSys was “just $21 million in income in 2018”. How that income relates to the several startups under the ConsenSys umbrella remains vague.
When asked to comment, ConsenSys representatives declined to remark.