New York-based R3 startup is considering sale as the Blockchain solutions industry has lately become challenging. A recent report reveals that it is trying to explore some strategic options to find a better path for the future. The options include complete sale of the company, getting into joint ventures with other companies or just sale a minority stake.
R3 was founded in 2014 and quickly made a name for itself in distributed ledger technology due to backing from major investors like Intel and Bank of America as well as partnerships with some of the world’s largest financial institutions.
The story of R3 started with great promise. It first formed a banking consortium that featured some prominent names such as JPMorgan and Goldman Sachs. It also developed Corda platform and became a trusted solution for banks and financial firms globally.
It successfully raised $122 million funding in 2018 and was equipped with a host of institutional investors on board. Its journey has not been without turbulence. Many of its original banking partners exited as the firm shifted towards venture funding and recent economic pressures. All these led to lay off 20% of its workforce as it works to streamline operations.
Blockchain is facing a challenging moment in the tech landscape and R3 appears to be looking beyond its traditional playbook. The company has reached out to a couple of entities including Ava Labs and the Solana Foundation. The primary requirement is to find some new sources of growth and this reflects a reality that many blockchain firms are grappling with.
The tech world is watching closely as R3 navigates the crossroads. The final decision could set a precedent for blockchain companies. The final decision should balance innovation with sustainability. It should spotlight the difficult choices required to weather industry challenges.
