New York-based blockchain startup ConsenSys aims to raise $200 million from investors, according to a report by The Information.
According to the April 15 report, the firm’s executives are already in talks with investors based in Hong Kong and South Korea.
Founded by Joseph Lubin, one of the co-founder’s of Ethereum, in 2014, ConsenSys is focused on building a growing ecosystem of developers that work on decentralized applications and infrastructure for the Ethereum blockchain. It also advises enterprises and governments globally.
Lubin started the company with his own funds, which he received from Ethereum, but the Brooklyn-based company’s business was massively hit by the on-going bear in the cryptocurrency market, especially when the value of Ether plummeted. Last year, it laid off more than 100 of its employees and, according to reports, is now employing around 900 people.
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Low Revenue, but High Ambitions
The technology media outlet also cited that the blockchain company has reported a mere $21 million in revenue for 2018, a major chunk of which came from its enterprise consulting business. For 2019, it is planning to boost its figures to more than $50 million, with around $40 million generating from its blockchain services.
Despite the small revenue, the company is seeking a valuation of at least $1 billion, the report outlined.
ConsenSys is also expanding its reach outside the United States, and in February opened a new office in Hong Kong to support its business in the Asia Pacific market, Finance Magnates reported.
Lubin, through his new venture, also incubated and invested heavily in many blockchain companies. According to estimations, ConsenSys investments peaked at $2.5 billion; however, with the slump in the market, that value has drastically decreased.
ConsenSys is not the only blockchain startup seeking investments amid the drop in the crypto value. Last month, reports surfaced that Goldman Sachs-backed Circle is considering to raise another $250 million.