Member Article

Revolut turns to crowdfunding to complement Series A round

London FinTech firm Revolut is launching a crowdfunding campaign to run along its Series A round as it continues to defy ongoing Brexit uncertainty.

The currency transfer app, which was launched 12 months ago, will receive up to £6.75m from venture capital firms Balderton Capital, Ribbit Capital, Index Ventures, Point Nine Capital, Seedcamp and Venrex, with customers given the chance to contribute a further £1m as part of its crowdfunding effort on Crowdcube.

If successful it would bring the total amount invested in the startup to more than £11.6m.

Revolut are looking to reward regular users through a system which will prioritise investors who have the most contacts on the platform, those higher up the list will be given priority access to invest before it is opened up to those lower down the pecking order.

Founder Nikolay Storonsky said that the crowdfund, and attached priority list, is a way to reward those who have been most loyal to the platform.

He said: “Our customers have been pivotal to our growth, and to the shaping of the product, so I am thrilled to offer them the opportunity to become part of our company.”

The tech firm has enjoyed rapid growth since it was founded last year, handling over $500m since July 2015 and attracting over 1,500 new users a month to its current base of 200k accounts.

Through its app which is linked to a pre-paid Mastercard, users are able to load the card with currency and spend it in over 90 countries around the world with no fees.

However, as with many businesses in the foreign exchange and FinTech sphere, last month’s Brexit vote has unleashed significant uncertainty in their long-term viability and prospects.

Touching upon the wider economic context in the UK, Nikolay underlined how today’s announcement shows how the startup is making the most of the opportunities provided by uncertainty.

He added: “These have been difficult weeks for UK markets, but where there is uncertainty, there is opportunity, and we look forward to continue building a ground-breaking British business.”

Daniel Waterhouse, who is General Partner at VC firm Balderton Capital, enthused about the tech firm’s potential to buck the uncertainty currently swirling around the economy and investment community.

“The positive feedback from consumers has been overwhelming; the speed of company and product development has been rapid; the plans for the future very exciting.

“We are confident that this company will exceed expectations, even in an unpredictable environment in Europe. We are delighted to lead another round of financing, and continue to work with an international team that are building a global business from London,” he said.

Pre-registration for the crowdfunding round launches today on Crowdcube and will be open for one week.