R3 Raises Less than Half of What they Wanted from Banks for Blockchain Funding

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Blockchain consortium R3 CEV has only managed to pique the interest of its member banks to invest $59 million in the company’s first funding round, less than half its overall target, a person close to the deal told Reuters on Friday.

R3, a New York-based startup, is seeking to raise $150 million from its members and strategic investors to fund its activities focused on developing blockchain-based technology for the financial services sector.

Of those original members, 36 have expressed indications of interest through stakes ranging from $3.5 million to $1 million each, the person said, declining to be named because the fundraising is private.

It had originally sought to raise $200 million, offering prospective investors a 90 percent stake in a new entity it would have run but restructured the deal to $150 million in return for a 60 percent stake in itself.

But now with Goldman Sachs and Santander pulling out of R3 along with some others staying in but declining to invest, the Corda project will be running on half tank and a little leaner than they expected. 

Corda’s current development team consists of:

  • CTO Richard Gendal Brown, formerly the executive architect for banking innovation at IBM.
  • Chief engineer James Carlyle, the former chief engineer for personal and corporate banking architecture at Barclays.
  • Lead platform engineer Mike Hearn, an ex-senior software engineer at Google and one of the first bitcoin users.
  • Architecture consultant Ian Grigg, inventor of the Ricardian Contract and co-inventor of triple entry accounting.
  • Head of research Tim Swanson, market researcher who has authored a study on bitcoin.

 

 

Richard Kastelein

About Richard Kastelein

Founder, Publisher and Editor in Chief of Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC, Richard Kastelein is also an advisor with a number Blockchain startups doing ICOs including DECENT.ch, Inchain, Humaniq, Chronobank, eGaas and others.

He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List. As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven etc, where he helped spread the cause for Blockchain technology and crypto-currency and, consequently, has built a notable network inthe scene.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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