Thursday, 26 April 2018

Revolut make a 20X paper gain for Crowdcube investors



In some much needed good news for Equity Crowdfunding, the latest valuation of Revolut at £1.2bn means that Crowcube investors who bought in at a value of around £44m when they raised £1m, are now sitting on a paper gain of 20X.


These figures are somewhat simplified but they are in the right ballpark. CC claim that its a 25X gain. Dilution has been approx at 137X for CC SHs and will clearly increase more if they need to raise more equity capital. The company removed all preemption rights from SHs last August. 

What you do have to remember, as you crack open your Miller Lite tonight, is that this is not yet a real gain. Their shares are illiquid - at that value anyway and the company is only valued at £1.2bn because some very rich Russians want a piece of it.

But it is great news for Crowdcube as they can now show that it is possible to get a 20X plus result - on paper. What they now need asap is for Revolut to surge forward in real value with an IPO or similar to realise that ROI and convert Crowdcube's claims into reality.

Hats off indeed.

13 comments:

  1. When did Revolutionary raise on Crowdcube? I know they raised on Seedrs a could years ago at £275m

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  2. You cant have done much DD?! Raised £1m in 2016 on Crowdcube.

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  3. They did a really annoying round where they only accepted investment from people who had the most friends using the product, even though it was in its infancy at the time. So basically only staff and their friends could apply. Hopefully Monzo will beat this pretty soon...I have another one which may well be onto a paper 10x soon too...watch this space...

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    1. correct although I got in, albeit it through a stupid amount of research begging anyone on twitter/fb/mates of mates to find out who had it. You are correct though, an annoying system.

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  4. Still comes nowhere close in covering the black hole that cc has created in most investors pockets! Let’s hope it gets to +100 billion for that.

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  5. Where did CC claim that its a 25X gain? And where are you getting the info about dilution?

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  6. Sources dear boy, sources. How do you think we know more than you do? Because that's what we do. If you are serious about finding out more please email me.

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  7. Revolut was not 'on Crowdcube' as such. It should be noted that the offer to invest was NOT made to Crowdcube investors. The Crowdcube platform was essentially 'whitelabelled' and all the investors came though Revolut. It is therefore predictably aggrandizing for CC to claim all the credit for this one, a great investment though it may turn out to be if you did get access. It should also be noted that this round was a case of generating PR hype rather than 'crowdfunding', the £1m allocation to Revolut users was an inconsequential portion of of a much bigger round.

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    1. Sources we have seen suggest this is right. Thanks Anon ;)

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  8. Rob - Whats your general predictions on valuation for this company in the future?

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  9. I think you wrong on that one ad Crowdcube had been in the process of offering investors to sell their shares. And seedrs investors can sell their shares on their secondary market

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    1. Sure Crowdcube offered to sell some investor shares and Seedrs run a very limited secondary market.

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