[Crowdfunding šŸ”Ø] Revolut crowdfunding - 2020 raise - Any investors around?

Investing and Markets šŸ“ˆ Startups Crowdfunding šŸ”Ø
68

I knowā€¦I was purely jesting. I think an IPO c.5-8bn for Freetrade is a good target

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69

Haha if Freetrade reached that valuation I would be Ā£14,000,000 richer! Come on Freetrade, pull your finger out :+1:

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70

Screenshot 2021-07-15 at 11.16.35
Screenshot 2021-07-15 at 11.16.351998Ɨ582 150 KB

433 happy investors. Especially the people who invested Ā£5,000 ( if they are still holding ).

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71

How many shares do you have!!! Can I please have some

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72

Thatā€™s a circ. 300-325x return.
Letā€™s just say I follow the matter closelyā€¦ for a friend :wink:

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73

Even Rishi Sunak is endorsing Revolut :slight_smile:

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74

just above market average :wink:

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75

But surely the dilution on these would be pretty huge?

76

Who cares about dilution if the valuation goes up?

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77

For sure. Think youā€™d be looking at closer to 120x after dilution. Still very very tasty

79

Raising $800m at $33bn valuationā€¦ itā€™s not a huge dilution.

80

Heā€™s talking about dilution from the previous round.

81

I think there are at least 10 million extra shares in issue now compared to the last round, if I am reading their filings correctly (possibly not!).

82

The share price at $33bn will be ~Ā£400-500(will depend how many shares created for employees) so if crowdcube investors entered at 1.68 as claimed above they have ~>250x return. The valuation went from 42m to 24bn, so a ~570x valuation increase became ~250x gain after dilution.
Pretty remarkable outcome.

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83

So a bit more digging and I found this little gem.

Apparently, Revolut staff are allowed to sell part of their shares at circ. 610$ per share so around 440Ā£ per share. Thatā€™s not as high as I originally calculated but thatā€™s still a 275x return from 2016ā€¦ which is not too bad :wink:

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85

This is where you get to find out what sort of investor you are. Do you look for fundamentals and value or do you look for the story. Both have their place and can cost you if you get it wrong (missed opportunities verse getting story changes)

Private market valuations are a interesting beast, I do wonder if previous round investor are complicit in encouraging the valuations to climb as a way of justifying their previous decision. I doubtlessly think it happens with those of us of who have invested in FT.

Anything SoftBank touches should be orange flag in my opinion- not a red ā€˜not with a barge poleā€™ flag but caution should be exercised. These were the guys who backed WeWork to a $40bn valuation. WeWork is going public at $11bn after a massive cost cutting program and management clear out.

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86

I think on balance Softbank has a pretty good record for VC type investments. Time will tell for Vision Fund.

87

One I sadly missed - hopefully opportunities from elsewhere in the near future :wink:

Well done to everyone thatā€™s backed Revolut since their early days.

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88

Did anyone receive any information from Crowdcube with regards to the share price after this new fundraising? My stake before this funding round was 41,900 GBP, whatā€™s the current value? As I understand, considering share dilution I canā€™t multiply it by 6x, but rather by 5x?

Also, what are your thoughts about potential exit and increase/decrease in valuation from this fresh fundraising to IPO?

Statistically if we assume this is the last funding round, 80% of startups have their valuation increased by Ā±90% at IPO. However, there are a lot of critics saying that Revolutā€™s valuation is nothing but a bubble.

Given I donā€™t have sufficient knowledge I can only rely on the new investors, i.e., that they made sufficient financial due diligence and strongly believe that their investment will grow.

Fingers crossed :slight_smile:

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89

The dilution was minimal (~2.5%) in the last round, even fx sometimes has higher fluctuations. The price of each share is appr. 610 USD, so it shouldnā€™t be difficult to calculate your stakeā€™s value in GBP.
Itā€™s true that SoftBank and Tiger global arenā€™t charity, and these investors expect to make money by seeing opportunity in Revolut. They are not bond investors and they expect that their investments would double, triple or 10x increase in the future. But as this is risky bet so only future will tell if their bets were correct, you canā€™t deny the fact that it may decrease significantly as well.
For us, crowd investors, the most likely liquidity event would be ipo, which I hope would occur in 1-3 years time. Fingers crossed :crossed_fingers:t2: until then!

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