After 12 years in business and several strategic turning points, British unicorn Improbable has reached profitability for the first time.
Improbable attributed this milestone to another business shift. After numerous attempts to create virtual worlds, the company reinvented itself as a venture builder.
“Raising venture capital has proven to be an optimal model for both Improbable and the metaverse, as experimentation with different use cases is key to adoption,” said Herman Narula, founder and CEO of Improbable.
A new financial report backs up his claim. In 2023, Improbable's revenues rose 37% to £66 million. With total profits of £11 million, the company can also celebrate its first full year in the black.
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Improbable reached this milestone after a tumultuous financial journey. Founded in 2012, the company rose to fame five years later when SoftBank invested $500 million in the London-based company. The investment was the largest funding round ever for a British startup.
At the time, Improbable was building virtual worlds for gaming and simulations on a large scale. SoftBank saw endless applications for this technology.
“Improbable’s technology will help us study diseases, improve cities, understand economies and solve complex problems on a scale previously unimaginable,” said Deep Nishar, the Japanese company’s then CEO.
Despite their big ambitions, SoftBank and Improbable struggled to make money from the technology.
The company tried to develop games, military simulations, and metaverse infrastructure, but the losses continued.
In 2023, Improbable announced another realignment. The company would move to a venture builder model.
The first major exit was the sale of Improbable’s own gaming services business. In December, Irish-based Keyword Studios announced a whopping £76.5 million for the MPG unit.
Improbable is currently focused on building companies in “cutting-edge sectors such as AI, blockchain and metaverse,” the company said.
Over the next two years, the company plans to launch several startups each year. Improbable plans to hold stakes in a high-quality portfolio and contribute ideas, resources and operational commitment.
According to Narula, virtual worlds will continue to be a business focus.
“We are continuing to advance the development of the metaverse through strategic investments in both large partnerships and startups,” he said.
“Our ambition is to shape the future and our experience gives us unique insights into this.”
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