Struggling Ethereum Giant ConsenSys Seeks $200 Million Raise at Billion-Dollar Valuation
By CCN.com: Ethereum development studio ConsenSys is struggling financially and is now trying to raise $200 million from outside investors to stay afloat.
The fundraising drive comes just four months after the Brooklyn-based blockchain startup laid off 13% of its workforce. ConsenSys has not yet commented on the rumors, which were reported by The Information.
Sources say the crypto company wants its valuation to top $1 billion, but prospective investors believe that’s unrealistic given its current financial woes. The Brooklyn-based firm — which employs 900 people — posted revenue of just $28 million in 2018.
Ethereum Giant ConsenSys Tightens Belt, Will Axe Underperforming Projects https://t.co/ba5AFx73FB
— CCN.com (@CCNMarkets) December 3, 2018
CEO Joseph Lubin Predicted Watershed Year for 2019
The layoffs at ConsenSys may not be over, since the company had initially projected that it might fire up to 60% of its staff back in December 2018.
Skeptics say ConSenSys is a cautionary tale of a blockchain startup that got caught up in the hype amid the bull market of 2017 when the bitcoin price approached a record $20,000.
As CCN reported, the company doubled its workforce last year to over 1,100 people while expanding into 29 countries.
