Ethereum company ConsenSys to divide software and investment businesses, cuts staff by 14% as it aims for $200M raise

Quick Take

  • ConsenSys has announced a major restructuring of its business, dividing its software development and investment efforts
  • As part of the move, ConsenSys has reduces its headcount by 14 percent.
  • “Over the past year, ConsenSys undertook a deep strategic review and articulated two separate strategies to grow and support the ecosystem as a software company and a separate investment company,” ConsenSys said in Tuesday’s statement.

Ethereum development studio ConsenSys announced Tuesday a major restructuring of its core business model.

ConsenSys told The Block that the move will see the ethereum-focused firm effectively dividing its efforts in two, with one side focusing on the development of software products and the other on investments in startups. ConsenSys has also undertaken a 14% reduction of its headcount, adding to the 13 percent in layoffs it announced in December 2018.

“Over the past year, ConsenSys undertook a deep strategic review and articulated two separate strategies to grow and support the ecosystem as a software company and a separate investment company,” ConsenSys said in Tuesday’s statement.

A source with knowledge of the process told The Block that the split in efforts was a result of difficulties in raising money for a company that was involved in both investment and software development.

With the changes in place, the software company is eyeing a $200 million raise, according to the source. The Information reported in August that ConsenSys was seeking to raise that amount from outside investors.

“ConsenSys will operate a software business composed of several of its products optimized for a modular stack, which includes Infura, PegaSys, MetaMask, and Codefi, among several others,” ConsenSys said in a statement. “The business is focused on two goals: providing developer tools and infrastructure for the develop