The new York startup R3 is not bankrupt, but the founder of the Bank blockchain consortium is in a difficult financial position. This conclusion follows from the financial documents that CEO David Rutter (David Rutter) provided Forbs.
Business newspaper recalled that earlier, citing anonymous former employees of the startup, there have been reports about the financial difficulties of the company. They argued that the startup gets “ridiculously low” income, and the annual targets below the planned tenfold. On this basis they concluded that the company received more than $120 million in several rounds of venture financing, will likely go bankrupt by the first quarter of 2019.
David Rutter, as noted by Forbs, went to providing “unprecedented access” to the financial performance of the company.
The journalists came to the conclusion that anonymous sources “exaggerate”, although the financial position of the company and not in the best condition.
“In the equation there are too many variables right now to put your hand on the Bible and tell what happens next. But it is important that I can state: we follow the plan”, — said the head of R3.
The available documents show that in April this year, the company has not achieved the planned level of income at 13%. According to Rutter, R3 expects that at the end of the year this figure will be 10%. It does not look like the drop targets ten times, which said the former employees of a startup.
However, Chapter R3 also acknowledged that the company “is losing money every month”, and despite the recent launch of the paid version of Corda, the firm may need to raise additional financing:
“We are losing money every month and closely follow this. Our Council is aware of this and we are working according to plan. Therefore, if we do all that we consider necessary, we will not have to look for money”.
Recall that R3 in October last year, presented the final version of the blockchain platform Corda. It has become the basis for a pilot banking and other solutions.