Original: at The Block , the original author: Frank Chaparro, Yilun Cheng
Source: Odaily Planet Daily Translator: Yu Shunsui
- Ethereum developer Consensys announced a major reorganization of its business, separating its software development and investment businesses.
- As part of this initiative, Consensys reduced its headcount by 14%.
- Consensys said in a statement on Tuesday: "In the past year, Consensys has conducted an in-depth strategic evaluation and articulated two separate strategies to develop and support the ecosystem as a software company and an independent investment company . "
Ethereum developer Consensys announced on Tuesday (February 5) a major reorganization of its core business model.
- Spending $100 million a year, can the $200 million financing that ConsenSys seeks be completed?
- Is the development of Ethereum opening a new direction? Hyperledger announces the acceptance of the first public Ethereum blockchain project Pantheon
- Opinion | Why is ConsenSys the best target for a JPMorgan acquisition?
- ConsenSys report: Central bank digital currencies can bring huge efficiency and cost savings to the financial system
- Strong alliance! JP Morgan discusses merger of blockchain unit Quorum to ConsenSys
Conensys told The Block that the move will allow the Ethereum-focused company to effectively split its business into two, one focused on software product development and another focused on investment in startups. Consensys also said it would lay off 14% of its staff and announced a 13% layoff as early as December 2018 .
Consensys said in a statement on Tuesday: "In the past year, Consensys has conducted an in-depth strategic evaluation and articulated two separate strategies to develop and support the ecosystem as a software company and an independent investment company . "
A source familiar with the process told Block that the division of the business was due to the difficulty in raising funds for a company involved in both investment and software development.
According to sources, as these changes progress, the software company is looking to raise $ 200 million. The Information reported in August 2019 that Consensys is seeking to raise this funding from external investors.
Consensys said in a statement: "Consensys will operate a software business comprised of several products optimized for modular stacks, including Infura, Pegasys, MetaMask, and Codefi, etc. The business focuses on two goals: Provide developer tools and infrastructure for developers, decentralized financial and entrepreneurial communities; and help companies in the financial services, trade finance and business sectors deploy and operate blockchain solutions. "
According to Consensys, the company's investment unit "will continue its venture capital activities, support its current portfolio of industry-leading companies, and invest in agreements, infrastructure, applications and businesses under the guidance of a dedicated investment management team To build a first-class team. "
The company added: "The priorities for new investments include early equity, liquid digital assets and applicable strategic opportunities."
Tuesday's statement appears to be the culmination of a year-long process that began with the 13% layoffs announced 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 the form and size of Consensys will change."
The company went on to explain: "As the company adjusts its direction, (Corporate Sales and Service) Solutions and Marketing will directly support the software business and continue to execute complex sales activities to drive developer and community initiatives. As a result, the total number of people has decreased About 14%, reorganizing the team to better meet the needs of focused software development companies. "
The company added: "Consensys will eventually complete the transition from a venture capital production model and spin off some of its internally funded projects into the Consensys Investments portfolio."
The company also claims that it will continue to support projects in the Ethereum ecosystem (it awarded about $ 175,000 in grants to the project team in October ) and said it will support these projects "through customer work and investment activities."
Expansion into the municipal market
Meanwhile, Consensys is trying to penetrate the $ 3.8 trillion municipal bond market. In another statement on Tuesday, Consensys disclosed the acquisition of broker-dealer Heritage Financial Systems, which will give the company both consulting and broker-dealer capabilities.
Consensys believes that blockchain technology can simplify the issuance of tokenized bonds . In particular, it can help issuers sell smaller par value securities, or minibonds.