ConsenSys to Boost Portfolio by 2020; Projecting $100M Cash Burn on Investments
The Ethereum-based ConsenSys is facing a difficult time. Not an awful one, certainly, but a difficult time indeed. The company, which is currently looking for $200 million USD in investments, projects that it will have around $152 million USD in expenses during 2019.
Unfortunately, as reported by CoinDesk, the company expects revenue of only $52 million USD, which would make the company lose around $100 million USD this year. After the bumpy year that was 2018, this is far from good news.
The answer to this drama? To get that $200 million USD. The pitch of the company will be as follows: ConsenSys has equity in 134 projects right now, it has tokens from several Initial Coin Offerings which can be very valuable and a lot of long-term potential.
It is clear that the main goal of the company is to survive. With such losses projected for this year, the company has to make it to 2020, especially because at least 10 blockchain networks will be ready to launch this year and the company expects to upgrade its growth a lot.
Last year, the ConsenSys leaders were restructuring the company after the bear market hit it really hard. Several people from the team were laid off and the company is more focused on revenue potential now.
The major goal is to help in the creation of projects that will have great revenues in the future. However, most of them take time to deliver, so this is the main problem this year.
ConsenSys will focus on four “interconnected layers” in order to create great platforms: decentralized finances (ConsenSys Digital Securities and Trustology), “web 3.0” (Kaleido and uPort), open platforms (Grid+ and Gnosis) and “the future of work” (Gitcoin and OpenLaw).
Following these guidelines, the expectancy is to invest in businesses that will make the company survive in the long term. As most of them will be ready in 2020, 2019 will be the clear rough year in which the company will have to do whatever it takes to keep surviving.
As mentioned, the company has stakes in 134 projects. At the moment, the company has incubated over 82 projects, worked with 27 directly on its accelerator program and also invested in 35 promising companies.
Four projects, in special, are very important for the company right now: MetaMask, Truffle, PegaSys and Infura. All of these projects show some potential and are already somewhat successful. MetaMask, for instance, is widely used in the Ethereum crypto community.
The company holds several tokens and, while most of them actually lost a good share of their value, they are still a good asset to have since their price will probably go up during the next bull run, which is expected from happening sometime between 2019 and 2021.
Can ConsenSys Upgrade Its Revenue?
What is possibly the most important question that ConsenSys has to answer right now is whether the company will be able to actually get more revenue. If it does not, there is no real reason for investors to be interested in the company and ConsenSys will probably end up in the red this year if it is not able to get some money.
ConsenSys was able to get $6.5 million USD in 2017, $21 million USD in 2018 and it projects $52.3 million this year. It can be clearly seen that the company is on the rise when it comes to revenues, so there chance of having over $100 million USD in 2020 and to keep growing seems real.
The company is shifting from smaller companies to more large investments, so they plan to grab the attention of the investors this way. If this will actually work is what will determine whether ConsenSys will actually become a very successful company in 2020 or if it will die in 2019.