Venture Capital Firm Continues Revolut Stake Reduction
London-listed venture capital firm Molten Ventures has revealed plans to continue selling down its substantial stake in fintech giant Revolut, following a recent share sale worth £26.3 million. This strategic move comes despite Revolut confirming its valuation has surged to $75 billion after a secondary share sale that attracted top investors, including Nvidia's venture capital arm.
Molten Ventures continues to hold a significant £152 million stake in the digital bank, representing the largest single shareholding within its portfolio valued at over £1 billion. The firm's chief executive, Ben Wilkinson, explained the decision stems from prudent portfolio management rather than diminished confidence in Revolut's prospects.
Balancing Portfolio While Recognising Upside Potential
Wilkinson told City AM that investors backing Revolut at its current $75 billion valuation will be seeking at least a 2x return, implying expectations the company could surpass $100 billion in valuation. However, with Revolut constituting such a substantial portion of Molten's portfolio, the firm intends to continue taking liquidity opportunities as they emerge.
"We might ride some through the IPO but we don't want to run a £200 million position... that would be the wrong balance for the portfolio," Wilkinson stated. He emphasised this approach combines sensible portfolio management with recognition that significant upside potential remains in the asset.
Broader Portfolio Performance and Future Exit Pathways
The announcement coincides with Molten reporting a nearly £100 million increase in its portfolio value, reaching £1.4 billion by the end of September. Several key investments contributed to this growth, including French blockchain firm Ledger, cloud-based phone business Aircall, and satellite company ICEYE.
This positive performance was partially offset by a more than £10 million decrease in the value of its stake in digital coaching platform Coachhub. The firm noted observing a partial recovery in London's IPO market during the fourth quarter and identified multiple IPO opportunities within its portfolio.
Molten stated: "We're working on a pipeline of realisation opportunities through strategic M&A and potential IPO routes, building on the strong exit momentum we delivered. These exit pathways represent the natural progression for our most mature holdings."
Investors responded positively to the news, with Molten Ventures shares rising 5.1% to 441p. The stock has climbed by more than a third since the beginning of the year, reflecting growing confidence in the firm's strategic direction.
