Revolut CEO says he removed venture capital investors from board

Revolut chief executive Nik Storonsky said the company no longer has venture capital investors on its board after he removed them during successive funding rounds. Speaking in a podcast interview with David Senra, he said he had accepted losses to make those changes.

Storonsky argued that some venture investors lack operational experience and can harm companies when given substantial authority. He said board members should be people who have built businesses, while investors should provide financing without voting rights or control over decisions.

He also questioned hiring advice he had received from venture investors. During Revolut’s first five years, he said, he recruited more than 50 experienced executives but retained only two. In another dispute, he refused an investor’s request to dismiss someone he considered his best employee.

Storonsky linked the creation of his separate venture firm, QuantumLight, to a disagreement in 2022 or 2023 with an investor that could legally block amendments to Revolut’s shareholder agreement. He said the dispute prompted him to compete with venture investors.

QuantumLight uses machine learning models to choose startups rather than relying on human judgment. According to Storonsky, the models pick 30 to 40 companies over two to three years, allocating an equal investment to each. He said its first fund, focused on Series B rounds, had delivered a 56% internal rate of return.