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

Revolut achieved an eye-watering valuation of $33 billion in 2021, but movements in the market now suggest its value is probably closer to $18 billion, if not 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 ...