Revolut is one of the biggest Fintech success stories in the UK. The digital bank launched in 2013 with a vision to reimagine banking and today reports more than 50 million customers worldwide. In its earliest days, Revolut leveraged online capital formation to raise money. The company utilized crowdfunding to fuel its growth, offering shares to smaller investors.
In July 2016, Revolut’s £1 million crowdfunding campaign on Crowdcube was oversubscribed by more than 10,000 investors. All of these individuals were reportedly Revolut users. The pre-money valuation was pegged at £42 million. In 2017, Revolut raised £3.9 million on Seedrs, now Republic Europe, from 4260 investors. The pre-money valuation was set at £275.9 million. At that time, it seemed pretty steep.
Jump to the present, and Revolut is valued at over £27 billion, according to Republic’s Secondary Marketplace. This represents a 5022.5% increase in valuation from a share price of £8.57 in August 2017. Early investors have done quite well in backing the firm.
But Revolut is NOT the biggest win for investors in private securities on the Republic Europe platform – according to their marketplace. Land Technologies shows an estimated return of 7454.8%, currently valued at £161 million. In February 2016, a share of Land Technologies was set at £0.10. Today, the indicative value per share is £7.84. Land Technologies is a company that helps developers acquire property. The company claims to be the fastest growing Proptech in the UK.
There are other big wins for investors who have backed early-stage ventures on the investment platform. Of course, there are many firms that have gone to zero or nearly zero – but that is how venture investing and capitalism work.
Republic Europe is one of the few private securities marketplaces that offers a Secondary Market where you may monitor estimated returns, including losses. ALL online investment platforms, providing crowdfunded securities should do the same. In the end, the industry will win by embracing transparency and publicly displaying returns. This instills confidence for investors and will help drive future investments.
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