October 20 – October 26 (Published October 30th)
PERSPECTIVES by Steve Payne
29 Crypto Private Financings Raised: $3,138.5M
Rolling 3-Month-Average: $629.7M
Rolling 52-Week Average: $445.6M
Another massive week in crypto financing, this time topped by Revolut’s $3B raise at an eye-popping $75B valuation that skews our trend analysis. (Remember our figure skating POV: throw out the high and the low, and this week was actually below average. Related, recall the difference between average and median.)
Revolut is a British neobank offering savings accounts, lending, credit and debit cards, and access to global stocks, ETFs, and cryptocurrencies. Over 40% of Revolut’s volume involves international transfers. Revenues are over $3B and profits exceed $1B. Revolut hit over 50M users this year. The neobank does not break out revenues from crypto, but in 2021, crypto revenue was 30-35% of total revenues. This dropped precipitously in 2022, but it is again driving top-line growth.
The $75B valuation should not be so surprising. In August 2024, Revolut completed a secondary share sale that valued the company at $45 billion. Last July, the Financial Times reported that Revolut was raising at a $65B valuation. This $3B raise (about 25x revenue) was another secondary sale, that is, with no new lead investor setting price. Revolut is now the highest-valued startup in Europe, and the sixth most valuable fintech in the world, behind Visa, Mastercard, American Express, Robinhood, and Coinbase (in that order), and ahead of fellow neobank Nubank and stalwart PayPal. (Fiserv was on that list, but dropped 40% in market cap this week after a disastrous shift in guidance.)
The second-largest private financing in crypto this past week was 99% smaller. Sign secured $25.5M in a strategic investment round led by YZi Labs (the former Binance Labs), with participation from IDG Capital. Sign is a developer of sovereign blockchain infrastructure, collaborating with governments around the world to design and implement national-scale blockchain projects, and has raised about $55M to date. YZi also led Sign’s prior round.