All Wealth Myths Are a Conspiracy of Non-Consensus and Time Compounding
The article explores how extraordinary wealth creation in venture capital stems from non-consensus bets combined with long-term compounding. It highlights Balderton Capital’s landmark investment in Revolut, which generated nearly 1,400x returns.
In 2015, Balderton invested £1 million in Revolut’s seed round, despite its early technical flaws and rejection by Y Combinator. Partner Tim Bunting saw potential in co-founders Nikolay Storonsky and Vlad Yatsenko—a driven ex-trader and a steady engineer—and recognized a structural opportunity in European banking.
Post-2008 crisis, trust in traditional banks was low, regulation (PSD2) enabled open banking, smartphone adoption soared, and consumers demanded digital-first finance. Revolut expanded aggressively into a global super-app, offering forex, crypto, stocks, and banking—often amid controversy over culture, compliance, and growth-at-all-costs.
Balderton supported Revolut throughout: backing its crowdfunding round, aiding management maturity, and helping secure a UK banking license. By 2025, Revolut reached 65M users, $4B+ revenue, and a $75B valuation.
Balderton’s success was underpinned by its equal-partnership model—inherited from Benchmark Capital—ensuring aligned incentives and collaborative decision-making.
The case illustrates the power law in VC: a few outlier investments drive most returns. The formula for outsized returns involves non-consensus founders, structural timing, and patient capital across cycles. The Revolut story exemplifies how vision, courage, and long-term commitment can transform risk into legendary reward.
marsbitKemarin 13:05
