US-based blockchain software provider Consensys is preparing to spin out the majority of startups in its incubator as part of a company-wide cost-cutting drive, The Verge has reported.
Consensys is beginning to spin out a portfolio of blockchain projects it has amassed through its internal incubator, Consensys Labs, a source familiar with the matter told The Verge. The move will involve the unit ceasing to be an incubator for startups, instead functioning as a more traditional investor.
The company intends to also reduce its current workforce of employees, which currently stands at approximately 1,200, by between 50% and 60%, the source added.
Earlier this month, Consensys took part in a $27.5m series B round for cryptocurrency trading platform ErisX, a month after Consensys Labs led a $2.1m seed round for blockchain technology developer Aztec.
Consensys Ventures, the strategic investment arm of Consensys, has invested in six companies including mobile wallet creator Vault and cryptocurrency exchange Virtuoso, it revealed in May 2018.
Formed in September 2017, Consensys Ventures was launched with $50m of capital and targets projects that utilise Ethereum blockchain technology.