Latest news with #NikolayStoronsky
Forbes
20-05-2025
- Business
- Forbes
Revolut CEO Raises $250 Million For AI-Powered VC Firm QuantumLight
SAN FRANCISCO, CA - SEPTEMBER 06: Revolut CEO Nikolay Storonsky speaks onstage during Day 2 of ... More TechCrunch Disrupt SF 2018 at Moscone Center on September 6, 2018 in San Francisco, California. (Photo byfor TechCrunch) Revolut founder Nik Storonsky's venture capital firm QuantumLight has secured $250 million in funding, marking a significant endorsement for its AI-driven investment strategy. In a venture capital landscape where artificial intelligence is increasingly becoming a differentiator, QuantumLight stands out with its ambitious claim that all 17 of its investments to date have been identified by proprietary machine learning algorithms rather than traditional human-led deal sourcing. Founded in 2022 by Storonsky and CEO Ilya Kondrashov, QuantumLight represents a bold experiment in reimagining how venture capital decisions are made. Unlike traditional VC firms that rely heavily on partner intuition, networks, and personal judgment, QuantumLight has developed an investment platform that analyzes over 10 billion data points and tracks more than 700 thousand venture-backed companies worldwide. "Our ambition is to build the world's best systematic venture capital and growth equity firm, and support the new generation of founders by sharing some of the operating principles that we developed at Revolut," said Storonsky in a press release, whose fintech company Revolut achieved a $45 billion valuation last year, cementing its position as Europe's most valuable startup. The fundraise signals growing investor confidence in data-driven approaches to venture capital. As AI models become more sophisticated, VCs are increasingly using the technology to outcompete rivals to the best deals, with industry reports indicating around a third of VCs find at least half their deals through such tools. According to Kondrashov, QuantumLight's approach allows it to "almost eliminate human judgment from the investment process," which he argues leads to faster decision-making less susceptible to the subjectivity and bias that can influence traditional venture investing. "Few, if any traditional VCs, have built a truly systematic and data-driven approach," Kondrashov stated. The firm's AI model evaluates startups across multiple dimensions, with specific parameters of the proprietary system remaining closely guarded. QuantumLight's technology represents the cutting edge of algorithmic investing in private markets, though its long-term performance across different market conditions remains to be proven. The true measure of this approach will be its ability to identify successful companies consistently over time. Unlike some sector-specific funds, QuantumLight maintains a generalist approach, backing startups across multiple industries including artificial intelligence, Web3, fintech, software-as-a-service, and digital marketplaces. The firm focuses on Series B and C rounds, typically investing when companies have established product-market fit and are seeking capital for expansion. Geographically, 70 percent of QuantumLight's portfolio companies are based in the United States, though the fund maintains no formal geographic restrictions. The fund will back startups in any sector anywhere in the world, at Series B and C stages. The fund's limited partner composition reflects Storonsky's substantial personal commitment—he and Kondrashov contributed approximately 25 percent of the total funding, with Storonsky providing the majority of that portion. While QuantumLight declined to name other investors, the firm indicated they include fellow billionaire tech founders, VCs, and institutional investors. Beyond capital investment, QuantumLight offers portfolio companies access to operational expertise derived from Revolut's extraordinary growth trajectory. The firm has developed detailed "playbooks" based on Storonsky's management philosophies, which it shares with founders in its portfolio. Hiring Playbook example, source: "One thing we did at the beginning is we sat down with Nik to understand how Revolut was able to grow so fast and beat well-funded competition by such a margin," Kondrashov said. "We found that the success of Revolut is to a large extent predicated on Nik's highly systematic approach to company management that we were able to summarize in a suite of detailed operating manuals—we call them 'playbooks'—which we believe other founders can adapt to their own businesses." Founded in 2015, neobank Revolut is now Europe's most valuable startup, with 50 million users and more than one billion dollars in pre-tax profit in 2024. These playbooks cover critical aspects of high-growth company building, from performance management to recruiting strategies. A previously released manual on team performance emphasized frequent reviews and encouraged senior leaders to "act on low performance early"—approaches that have proven successful at Revolut. Today, QuantumLight is releasing another playbook focused on talent acquisition strategies amidst Europe's ongoing tech hiring challenges. The manual details systematic approaches to identifying, evaluating, and securing top talent in competitive markets. The ultimate measure of any investment strategy is returns, and here QuantumLight faces the same challenge as any relatively young fund: limited track record. While the firm reports promising early results across its 17 investments, venture capital performance is typically evaluated over longer time horizons. Kondrashov acknowledges the importance of long-term performance validation but remains confident in the firm's methodology. The firm plans to return to fundraising markets next year, suggesting confidence in its ability to demonstrate compelling early results to investors. Storonsky's presence looms large over QuantumLight's identity and strategy. The founder's success with Revolut—which now boasts 50 million users and generated over one billion dollars in pre-tax profit in 2024—lends credibility to his investment theses. This synthesis of human experience and machine learning capability may represent the most realistic future for venture capital. While pure algorithmic investing offers efficiency and potential bias reduction, entrepreneurship remains deeply human, with success factors that can be difficult to quantify. As QuantumLight deploys its new capital, the venture capital industry will be watching closely. If the firm can demonstrate superior returns through its AI-first approach, it could accelerate similar transformations across the industry. QuantumLight plans to continue refining its AI models with each investment, creating a feedback loop that theoretically improves decision quality over time. For Storonsky, QuantumLight represents both a financial opportunity and a chance to further validate his systematic approach to business building. Whether algorithms can consistently outperform human investors in picking tomorrow's winners remains an open question—one that QuantumLight's $250 million experiment aims to answer definitively.
Telegraph
19-05-2025
- Business
- Telegraph
Revolut snubs Britain for France with £850m investment
Revolut is to invest more than €1bn (£840m) in France after criticising Britain's 'extreme bureaucracy'. The London-based fintech company has unveiled plans to open new Western Europe headquarters in Paris as President Emmanuel Macron looks to lure cash from abroad. Revolut will spend more than €1bn in France and create 200 new jobs in what it said was the largest foreign investment in the French financial sector in over a decade. It will also apply for a French banking licence to operate in the country. The announcement coincides with Macron's Choose France summit, which is targeting €20bn of fresh foreign investment. The French president was on Monday wooing top chief executives and business leaders from a range of sectors at the Palace of Versailles. Revolut's French expansion will mark a setback for Sir Keir Starmer, who hosted his own investment summit late last year in a bid to attract cash from abroad. The tussle for foreign investment has taken on even greater significance as US president Donald Trump's sweeping tariffs upend global trade. Nikolay Storonsky, chief executive of Revolut, has previously attacked Britain over its high taxes and red tape. The entrepreneur branded UK competition regulators 'extremely bureaucratic' amid a lengthy delay to secure a banking licence. He added that he would never choose to list his company in the UK. Revolut said its decision to open new Western European headquarters in France did not impact its global base in London, adding that it would continue to expand its operations in Britain. The Paris headquarters will initially serve the company's operations in France, with branches in Ireland, Germany, Portugal, Spain, and Italy to open in due course. Revolut's existing headquarters in Lithuania will continue to serve other European markets. Nevertheless, the decision to open a new base away from London is a blow to Britain. Revolut was valued at $48bn (£36bn) in March, making it Europe's largest fintech, while it has more than 55m customers worldwide. Bosses have set a target of reaching 100m customers and are eyeing expansion into new product areas, including mobile phone contracts, mortgages and overdrafts, as it tries to become an all-in-one 'super app' for finance. Sid Jajodia, Revolut's chief banking officer, said: 'This marks a pivotal moment for Revolut's European banking strategy. Establishing our Western Europe HQ in Paris and applying for a French banking licence positions us closer to our largest and fastest-growing customer base. 'France's dynamic banking ecosystem, robust regulatory environment, and strategic position as a financial hub provide the ideal foundation to accelerate our growth and deepen customer relationships.' Éric Lombard, France's economy minister, said: 'Revolut's decision to establish its Western European headquarters in Paris is excellent news, and a clear reflection of international investors' confidence in the attractiveness of France. 'This decision – one of the largest foreign investments in the financial sector in France in the past 10 years – further strengthens Paris's position as the leading financial hub in Europe.'
Business Insider
24-04-2025
- Business
- Business Insider
At this fintech, bad Karma means a lower bonus
Fintech startup Revolut awards or docks "Karma" points based on how staff follow compliance rules. These scores roll into team totals that can impact individual bonuses. Revolut says the system has improved risk performance by 25% since launching in 2020. If you work at Revolut, it's not just your targets that could determine your bonus — it's your "Karma." The London-based fintech uses a points system called Karma to score departments on how well they follow risk and compliance rules. Bonuses are calculated based on individual performance, but the final payout is adjusted using a multiplier tied to each team's Karma score. If a department completes required training, flags compliance issues early, and follows policy, employees in that group collect Karma points that may increase their bonuses. Details of the program were included in Revolut's latest annual report, released Thursday. The company, which provides current accounts, crypto trading, says Karma is designed to reinforce the idea that risk management is a "shared responsibility." A Revolut spokesperson told Business Insider that Karma isn't about tracking individual staff. "A typical example would be in the event of a risk incident, we apply Karma to ensure investigation and remediation are done on time," they said. Karma's gonna track teams down Revolut says companywide compliance performance has improved by 25% since the system launched in 2020. Real-time dashboards track department-level performance, and so-called "risk champions" are embedded across teams to model good behaviour. The company said in its annual report that it expanded the program last year with six new data sources. Karma is part of a broader shift for Revolut to show it's taking governance seriously. The company secured a UK banking license, with restrictions, in July 2024, after a three-year wait tied to past governance issues. The company's CEO, Nikolay Storonsky, has previously laid out a hardline approach to performance. In a September 2024 report published by Quantumlight, a venture firm he co-founded, he said underperforming staff at tech startups should be given six weeks to improve or leave immediately. Firms must "direct resources to retain and promote top talent" while focusing on "exiting underperformers as fast as possible," he added. In its annual report released Thursday, Revolut reported £1.1 billion in pretax profit for 2024 — up 149% from the previous year. The company now has over 52 million customers, and crypto-driven revenue from its Wealth unit tripled. It's also expanding into mortgages and lending, making internal oversight more important than ever. The Revolut USA Prepaid Visa® and Prepaid Mastercard® are issued by Metropolitan Commercial Bank pursuant to a license from Visa U.S.A. Inc. for Visa cards, and Mastercard International for Mastercard cards, and may be used everywhere Visa or Mastercard are accepted. Banking services are provided by Metropolitan Commercial Bank, Member FDIC, and are subject to the terms of a Cardholder Agreement. 'Metropolitan Commercial Bank' and 'Metropolitan' are registered trademarks of Metropolitan Commercial Bank © 2014. A note from Metropolitan Commercial Bank: Funds in your Revolut Prepaid Card Account are held at an FDIC insured institution. Your funds will be held at or transferred to Metropolitan Commercial Bank, an FDIC-insured institution. While there, your funds are insured up to $250,000 by the FDIC in the event Metropolitan Commercial Bank fails if specific deposit insurance requirements are met and your card is registered. See for details. FDIC insurance does not protect your funds in the event of Revolut's failure or from the risk of theft or fraud. See Terms & Conditions for details. Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank, Member FDIC.
CNA
24-04-2025
- Business
- CNA
Revolut profits soars on crypto boom as CEO lifts stake
LONDON :Revolut's pretax profit surged 149 per cent last year to 1.1 billion pounds ($1.46 billion) as the financial technology firm rode a wave in crypto trading and earned more from interest rates and card fees, the company said on Thursday. Revenue at the London-based fintech rose to 3.1 billion pounds, up from 1.8 billion pounds in 2023, it said, driven by income from interest on the back of higher rates, card payments and the company's "Wealth" segment, which includes trading and crypto products. Its pretax profit was more than double the 438 million pounds in 2023. Revolut has emerged as the most successful of the handful of European fintechs founded in the past decade with a digital-only model. It was valued at $45 billion last year, rivalling big European lenders, and it has plans to expand into mortgages and consumer lending to challenge high street lenders, as well as growing in the United States. The valuation followed it securing a UK banking licence, ending a three-year wait after running into difficulty following scrutiny over its internal accounting. Revolut said on Thursday it expected to start operating as a UK bank this year. In its annual report, Revolut also said its CEO and co-founder, Nikolay Storonsky, increased his ownership in April 2025 by acquiring an "indirect, non-voting interest" in the company during a reorganisation of its ownership structure. Storonsky now owns, directly or indirectly, more than 25 per cent of Revolut, the report said, without disclosing what he owned previously. Revenues in its "Wealth" business grew 300 per cent year-on-year, driven by increased crypto trading activity and the launch of Revolut's crypto exchange. Revolut chief financial officer Victor Stinga declined to comment on how much of the Wealth revenues came from crypto. "Market volatility drives activity and this was the case across all asset classes," he told Reuters. The company has previously signalled its intention to do a public listing, but Stinga declined to comment on Thursday on the timeline for a possible IPO. Customer numbers grew to 52.5 million, up from 38 million in 2023, and business customers made up 15 per cent of the company's revenue. Revolut remains small for customer lending, reporting 979 million pounds of customer loans on its balance sheet in 2024, up from 528 million the year before. The company also said it was investing heavily in protecting customers from fraud and scams. That follows several media reports last year which said Revolut was named in more cases of fraud than any of the major UK high street banks. Revolut has said social media platforms remain the biggest source of scams reported to it, and has called for them to commit to reimbursing victims. "Revolut remains poised for exponential growth," CEO Storonsky said. ($1 = 0.7518 pounds)
Daily Mail
24-04-2025
- Business
- Daily Mail
Revolut to start British banking operations this year as profits surge
Revolut expects to finally start operating as a UK bank in 2025 after the challenger's profits and revenues surged last year. The group first applied for a UK banking licence in 2021, but the approval process ended up taking more than three years. Revolut faced a series of obstacles while trying to secure a permit from the Prudential Regulation Authority, but secured its licence from the regulator in July 2024. On Thursday, Revolut said it was 'working hard to complete the setup of our processes before formally starting operations as a UK bank during 2025'. The firm's annual pre-tax profit rose by 149 per cent last year to £1.1billion as the firm rode a wave in crypto trading and earned more from higher interest rates and card fees. The London-based fintech firm saw its revenue increase to £3.1bllion in the period, up from £1.8billion the previous year. Crunch time: Nikolay Storonsky is the chief executive and founder of Revolut Revolut said the upturn in revenue was driven by card payments, income from interest on the back of higher interest rates and its wealth arm incorporating trading and crypto products. The firm's annual pre-tax profit was more than double the £438million in 2023. Customer numbers grew to 52.5million, up from 38million in 2023, Revolut said. Wealth revenues grew 300 per cent year-on-year, driven by increased crypto trading and the launch of the group's crypto exchange. Revolut remains small for customer lending, reporting £979million of customer loans on its balance sheet in 2024, up from £528million the year before. Revolut was valued at around £34billion last year, rivalling large European lenders, and it has plans to expand into mortgages and consumer lending to challenge high street lenders. The valuation emerged after the group secured a UK banking licence, ending a three-year wait after running into difficulty following scrutiny over its internal accounting. In its annual report, Revolut also said its chief executive and founder, Nikolay Storonsky increased his ownership in April 2025 by acquiring an 'indirect, non-voting interest' in the company during a reorganisation of its ownership structure. Storonsky now owns, directly or indirectly, more than 25 per cent of Revolut, the report said, without disclosing what he owned previously. Storonsky said on Thursday that 2024 had been a 'landmark' year for the business. He added: 'We're making strong progress towards 100million daily active customers across 100 countries, driven by growth in the UK, Europe and our expansion markets.' Revolut was founded in London as a decade ago as a provider of foreign exchange and money transfer services. Zopa Bank doubles pre-tax profit Online-based bank Zopa Bank doubled its pre-tax profit in its second full year of profitability. The London-based firm pocketed £34.2million in the 2024 financial year, up from £16.8million the previous year. Revenue jumped 30.2 per cent to £303.4million, driven by a 60 per cent surge in its deposits base to £5.5billion. The rise in income offset a 28 per cent increase in operating expenses, which reached £105.3million. Jaidev Janardana, chief executive at Zopa, said: 'We have created a business model where we win when our customers win, and our interests are very aligned with our customers – we feel that's a more sustainable way of creating a brand and running business.' On the possibility of an upcoming initial public offering, Janardana, said 'the business was ready, the markets need to be ready as well.'
