Odaily Frontline｜ConsenSys reorganized its core business and cut 14% of its employees

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2020-02-05 07:42 (UTC+8)

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The business split was due to the difficulty of raising capital for a company that was involved in both investing and software development; the software company was eyeing $200 million.

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The business split was due to the difficulty of raising capital for a company that was involved in both investing and software development; the software company was eyeing $200 million.

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Summary:
Ethereum developer Consensys has announced a major restructuring of its business, separating its software development and investment businesses.
As part of the move, Consensys cut headcount by 14%.

"Over the past year, Consensys has conducted an in-depth strategic review and articulated two separate strategies to grow and support the ecosystem as a software company and as an independent investment firm," Consensys said in a statement Tuesday. .”

Ethereum developer Consensys announced a major restructuring of its core business model on Tuesday (Feb. 5).Conensys told The Block that the move would see the ethereum-focused firm effectively split its business in two, with one part focused on the development of software products and the other on investing in start-ups. Consensys also said it would cut 14% of its workforce, as early asDecember 2018

A 13% layoff has been announced.

A source with knowledge of the process told The Block that the business was split because of difficulties raising capital for a company involved in both investment and software development.The InformationWith the changes underway, the software company is eyeing to raise $200 million, according to sources.

It was reported in April 2019 that Consensys was looking to raise this funding from outside investors.

In a statement, Consensys said: “Consensys will operate a software business comprised of several of its products optimized for the modular stack, including Infura, Pegasys, MetaMask and Codefi, among others. The business is focused on two objectives: Providing developer tools and infrastructure to developers, the decentralized finance and startup communities; and helping businesses in the financial services, trade finance and commerce sectors deploy and operate blockchain solutions."

"The new investment prioritizes early-stage equity, liquid digital assets, and where applicable, strategic opportunities," the firm added.

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ConsenSys changes

Tuesday's announcement appeared to be the culmination of a year-long process that began with a 13% layoff announced by Consensys in December 2018. At the time, the company articulated its Consensys 2.0 strategy.

In a statement on Tuesday, Consensys said: "Separating the core software business from investment activities means that Consensys will change in shape and size."

The company went on to explain: "As the company reorients, the (Enterprise Sales and Services) Solutions and Marketing groups will directly support the software business and continue to execute complex sales activities, drive developer and community initiatives. As a result, headcount is reduced by approximately 14%, reorganizing the team to better meet the needs of a company focused on software development."

"Consensys will finalize its transition from a venture capital production model and spin off some of its internally funded projects into the Consensys Investments portfolio," the firm added.The company also claims that it will continue to support projects in the Ethereum ecosystem (it has a), and said it would support the projects "through client work and investment activities."