Euan Blair’s rise to become one of the UK’s richest start-up entrepreneurs has been meteoric – but is his company Multiverse REALLY worth £1.4billion?

Rising star: Euan Blair’s Multiverse startup has yet to turn a profit

Euan Blair’s rise to become one of the UK’s richest start-up entrepreneurs has been meteoric.

But why is Multiverse, the company founded just six years ago by the eldest son of former Labor Prime Minister Tony Blair, so popular?

A fundraiser last week put the ‘ed-tech’, or educational technology company, at £1.4billion.

The 38-year-old’s personal fortune, mostly made up of his stake in the business, stands at around £420million on paper.

But are these incredible sums based on reality – or is there, as with many tech companies, a whiff of hype? Multiverse describes itself as a “mission-driven tech startup”, offering internships with top employers from Google to BP.

Blair junior last month bought a £22million five-storey townhouse in Kensington, west London, where he lives with his wife Suzanne and their child. His family ties, coupled with his company’s stunning valuation, have made him a darling of the London tech scene.

However, an analysis of Multiverse’s most recent accounts, for the 12 months to the end of March 2021, shows surprisingly modest revenues of £10.1m, compared to just under £5m in the year. previous year, and net assets of £25.6 million.

The company, which has 600 employees, says it now serves more than 5,000 apprentices on two continents. It has yet to turn a profit and posted a loss of £10.9million last year, after £5million of red ink for 2020.

In technology, it is not uncommon to see high valuations on loss-making companies. But based on those numbers, Multiverse is on a valuation of around 140 times its current sales, which is a heady multiple even for the tech world. Analysts say the valuation is based on the company’s establishment in the United States, which is not guaranteed.

Backers include private equity giants StepStone Group, General Catalyst and Lightspeed Venture Partners, as well as former Sky chief executive Jeremy Darroch.

Multiverse makes its money by charging a fee to prime clients once an apprentice is successfully placed. The client then pays Multiverse to train the apprentice.

The bankers woo Blair Junior in the hope of getting a lucrative fee if he sells or starts the business. A broker said: “They’ll be lining up at his door now.”