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.

Just as Revolut’s rumoured secondary offering would provide liquidity without forcing an IPO, a structured secondaries market would enable early shareholders to realise returns while allowing new investors – particularly those with the capital and connections to support late-stage growth – to acquire stakes in proven businesses.

While Revolut exemplifies Britain’s fintech success, there is huge opportunity in tapping into the UK as a true hub for innovation. The UK’s research credentials are impeccable. Oxford and Cambridge alone have produced innovations that have reshaped industries. But brilliance trapped in academic journals doesn’t create jobs or transform economies. While Silicon Valley perfected the alchemy of turning scientific papers into billion-pound enterprises, the UK has been stuck in a perpetual state of potential.

Deep tech isn’t about creating another food delivery app or social network. It’s about rewiring the fundamental technologies that underpin our world. Our portfolio company Space Forge, for instance, is developing reusable platforms for manufacturing high-value materials in space. Britain’s universities have quietly stockpiled expertise in these domains, creating a talent density that rivals any innovation hub globally.

What’s been missing is patience – the capital willing to wait for science-based businesses to mature. While American and Chinese investors play the long game, UK capital has historically demanded quicker returns.

Look at Cambridge Innovation Capital’s bold £100 million gambit last week. This isn’t just another fund; it’s a declaration of intent in this evolving landscape. Backed by British Patient Capital and Aviva Investors, CIC’s war chest targets the crucial middle ground – those breakthrough companies that have survived infancy but need rocket fuel to reach escape velocity.

The elephant in the room is this vast pool of institutional capital that remains largely untapped for innovation investment. UK pension funds have watched from the sidelines as their Canadian and Australian counterparts reap the rewards of tech investment. The speculation around Revolut’s valuation shows exactly what they’ve been missing.

Aviva Investors’ backing of CIC’s fund isn’t just another transaction – it’s a crack in the dam. If other institutional investors follow suit, the trickle could become a flood, reshaping the landscape for ambitious UK tech firms. The interest in Revolut’s rumoured secondaries offering signals that investors are seeking alternative pathways to participate in mature private companies.

The UK’s innovation story has too often ended with promising companies departing for American money and markets. While London celebrates the birth of unicorns, New York and Nasdaq reap the rewards of their maturity. However, the fact that Revolut might achieve a $60 billion valuation while remaining UK-based signals that this exodus isn’t inevitable.

The government’s overhaul of listing rules and regulatory frameworks aims to make staying in Britain not just patriotic but pragmatic. A robust secondaries market could play a crucial role in this retention strategy. When founding teams and early employees can achieve partial liquidity without an exit, they gain the financial freedom to pursue longer growth trajectories.

The elements for success are aligning: world-class research, institutional capital beginning to engage, and Revolut demonstrating the enormous appetite for secondaries in UK tech. If Britain can develop this market alongside other advantages, it won’t just participate in the next technological revolution – it will help define it.

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