Revolut’s rumoured $60 billion valuation in a potential secondary share sale reveals both the extraordinary scale the UK venture capital industry has achieved and the profound liquidity challenge facing investors. While the fintech giant represents a British success story of global proportions, the speculation around this secondary offering exposes a fundamental tension in the ecosystem: venture investors sitting on valuable assets they cannot easily convert to cash without a traditional exit.
These rumours spotlight what’s happening across the UK tech ecosystem. As the average time to exit has stretched from 4 – 5 years to 10 – 12 years, early investors and employees find themselves with valuable but illiquid assets. This “capital imprisonment” chokes the recycling of funds and expertise that could otherwise fuel the next generation of startups.
The evidence for this hunger is compelling. In 2023, UK venture-backed companies raised over £8bn billion according to the BVCA, yet the IPO market remained largely closed, with only a handful of tech listings on the London Stock Exchange. The intense interest in Revolut’s rumoured secondary opportunity mirrors what founders across the ecosystem report – increasing inquiries from both external investors and employees seeking to liquidate shares without waiting for an uncertain IPO timeline....