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.

 

 

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) - Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, "The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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