Stock Take
Revolut devaluation is just the latest sign that private markets are still correcting
Private investment houses that sank money into tech firms over the last three years when valuations hit record highs are now looking at portfolios that are worth far less
In July last year, Klarna, the Swedish 'buy now, pay later’ firm, completed an $800 million fundraise at a valuation of $6.5 billion. This marked a collapse on its previous valuation of more than $45 billion just a year earlier.
At the time, many onlookers felt that the company’s management must have been desperate to accept such a hefty “down round”. In hindsight, it looks like Klarna was simply facing up to a market reality ...
