Fortune reported Thursday that R3 is facing a cash crunch, coming just over a year after the corporate announced a $107 million funding round to “bring blockchain services to the financial sector” (though per the publication, $98.2 million of that quantity constituted “new money”).
Charley Cooper, a director for R3, “did not provide any specific figures but told Fortune that the corporate exceeded its revenue targets last year and can provide an update at the top of this civil year ,” consistent with Fortune.
R3 first launched in 2014 with the stated goal of applying the technology underpinnings of blockchain to the finance sector, culminating within the launch of their distributed ledger technology (DLT) platform Corda. Its consortium attracted variety of big-name supporters including Wall Street banks like JPMorgan and Goldman Sachs.
But R3 later saw headwinds, losing JPMorgan and Goldman, among others, as consortium members in 2017, as reported by CoinDesk.
Fortune, citing two former employees at R3, reported that the corporate might be out of cash by early next year even with the recently raised $107 million funds. one among them added that the amount was also likely “overstated” because it “included consulting fees from prior years that R3 reclassified as equity under terms of its partner agreements.”
Yet during a tweet published Friday, R3 indicated that its finances aren’t a priority .