Ethereum-Backing ConsenSys Looks To Secure $200 Million At $1 Billion Valuation
ConsenSys Looking To Raise $200M At $1Billion Valuation
There have been reports coming in that confirms that ConsenSys is looking to raise $200 mil from outside investors.
Joseph Lubin founded ConsenSys in early 2015 as a software foundry to develop decentralized software services and applications that operate on the Ethereum blockchain. Their mission is to enable progress to Web 3.0 by building platforms, applications, and tools while offering services to ensure they are useful to their customers.
The company provides pitched investors in Hong Kong plus South Korea, seeking a value of at least $1 billion. They are projecting over $50 mil in revenue in 2019, along with $40 million coming from its “services business” and the remaining coming from the software products. Notably, ConsenSys generated $21 mil in revenue in 2018, most of which came from its enterprise contacting arm, which provides consulting services, which provides consulting services to entities like Accenture and IBM.
Some investors observe this valuation as “too higher given the company’ s income and expenses.” Although their assets are more diverse, which pulls up their valuation. They have significant shares in the blockchain companies that they have incubated.
Notably, this news comes after ConsenSys had announced that they are laying off 50-60% of their workers. According to Lubin, the decision to make such a move reflected the need for “restructuring priorities” of the company.
Nobody knows if ConsenSys 2.0 will be a desperate maneuver to survive or a genuine attempt at innovation, but Lubin wants us to believe that it will be the former. He affirmed that it is not enough to “do cool projects” anymore and that the company will focus on being more rigorous and act in different lines, including financial sustainability. This attempt at fundraising might be their last desperate push to survive.