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.