Two years after raising cash through Crowdcube the digital banking challenger has seen its valuation soar from £42m to over £1.2bn.
Investors who backed Britain’s first digital banking unicorn Revolut via the equity crowdfunding platform Crowdcube two years ago, have been able realise returns of 19 times their original stake.
Back in July 2016 investors were able to invest as little as £10 or as much as £5000 via Crowdcube’s platform into Revolut. If you had invested the maximum £5k allocation of Revolut shares when they raised funds on Crowdcube and subsequently cashed out now your stake would be now be worth £95k representing a return of 1,900 per cent.
In April this year, Revolut received a $250m investment, led by DST Global, valuating the company at £1.2bn, making it one of the first crowdfunded unicorns.
Following that investment, crowd investors had the opportunity to either sell their shares back to Revolut, or retain them. Those who chose to sell have now received payment into their bank accounts.
Revolut originally raised £1.01m in the July 2016 from crowd investors, only a year after the company was founded. Balderton Capital and Index Ventures, two venture capital firms also invested at that point.
Luke Lang, co-founder of Crowdcube, said: “This is a huge moment for the finance sector - and for Crowdcube, which was built to give anyone the chance to invest in the next big thing. Crowd investors backed Revolut very early in the company’s life, alongside leading venture capital firms, just two years ago.
"Crowdcube has made it possible for the man or woman in the street to invest in a unicorn and bank real cash profits at a level only experienced before by the closed world of venture capital firms.”
Crowdcube, founded in 2011, has helped over 700 companies successfully raise funds, it says with a total of £490m having been invested on the platform to date by a crowd of over 560,000 investors.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.