May 25, 2022

Crypto developer ConsenSys, owner of the popular Ethereum-based MetaMask wallet, today announced a $450 million Series D round that values ​​the company at $7 billion, almost double its value since the last fundraiser in November 2021. ,

Parafi Capital took the lead along with other existing investors Third Point, Marshall Weiss, True Capital Management and United Talent Agency venture fund UTA VC. New investors also participated, including Temasek, SoftBank Vision Fund 2, Microsoft, Anthos Capital, Sound Ventures and C Ventures.

Founded in 2014, ConsenSys has gone through many changes and restructuring initiatives throughout its history. It established its current structure in 2020 through a deal in which some of the assets of the company’s corporate arm, ConsenSys Mesh, were sold to ConsenSys Software Incorporated (CSI), a post-deal newly formed company that now serves as the base unit. Some of the company’s flagship products, including MetaMask and the Infura developer platform.

The funding round comes amid allegations from a group of ConsenSys shareholders that company founder Joseph Lubin illegally moved assets from ConsenSys Mesh to CSI as part of the deal. The group, which claims to represent more than half of all known ConsenSys Mesh shareholders, alleges that Lubin transferred $46.6 million worth of assets and intellectual property as of June 2020, causing them to be unfairly damaged while Lubin was prosperous . The group is pushing for an independent review by a Swiss court.

ConsenSys founder Joseph Lubin

ConsenSys founder Joseph Lubin. image credit: ConsenSys

A spokesperson for ConsenSys Mesh told gaming-updates that he expects an audit, if any, to confirm that the transaction was made at fair market value.

“While we respect the rights of all shareholders and the legal process that grants such rights We believe this is a clear case for these minority shareholders, who are expected to apply retrospective valuation of their value. ConsenSys software incl. Today, at the cost of property at the beginning of 2020,” the message says.

According to the Blockworks report, the assets in question include Metamask and the Infura developer platform, as well as Truffle, Pegasys, Codefi and other global subsidiaries. Many of these products are key to the Ethereum ecosystem, and their popularity partly reflects Lubin’s position as the co-founder of Ethereum.

ConsenSys reported nine-figure revenue in 2021, according to a company spokesperson. MetaMask alone has over 30 million monthly active users (MAUs), up 42% from four months ago, Simon Morris, director of strategy at ConsenSys, told gaming-updates. According to these statistics, it is the most widely used Ethereum wallet.

At the time of the asset transfer, MetaMask was valued at $4.4 million, although a group of shareholders argue that the subsidiary was actually worth too little at the time. At the time of the handover, Infura, the Ethereum ConsenSys development platform, was worth $14.5 million, according to Blockworks.

ConsenSys also announced today that Infura now has 430,000 developers using the product, up from 350,000 last November, and the API now exceeds The annual volume of ETH transactions on the network is $1 trillion.

The latest funding will support the development of ConsenSys’ entire suite of products – the company expects to grow its team from 700 employees to nearly 1,000 by the end of this year on both the developer and user side. Morris said.

Despite its deep roots in the Ethereum ecosystem, the company plans to use some of the proceeds to roll out a plugin extensibility system that will allow its products to integrate with a wide range of other protocols. However, Morris declined. Evaluates chains.

Although Ethereum remains the most popular blockchain overall, it has faced challenges from competitors such as Solana, which offer low transaction fees and high throughput. The company’s drive to go beyond Ethereum is “definitely driven by market demand” and a desire to push further Web3 innovation, Morris said, noting that one of Infura One’s key areas is multi-chain scalability.

The company’s strategy hasn’t changed since the last fundraiser, Morris said.

“This is a company focused on Metamask and Infura. They developed the platform. There are millions of users and these things feed off each other,” Morris said.

According to Morris, the signing for the Series C round was heavily oversubscribed. He said that ConsenSys “didn’t want to take more money at that valuation”, later deciding to raise Series D to aim for a higher figure.

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