After 12 years in business and several strategic pivots, British unicorn Improbable has achieved profitability for the first time.
Improbable credited the milestone to yet another business shift. After numerous attempts to create virtual worlds, the company has reinvented itself as a venture builder.
“Venture building has proven to be the optimal model for both Improbable and the metaverse, as experimenting with various use cases is key to achieving adoption,” said Herman Narula, Improbable’s founder and CEO.
A new financial report substantiates his claim. In 2023, Improbable’s revenues increased by 37% to reach £66mn. With a total profit of £11 million, the business can also celebrate a first full year in the black.
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Improbable reached the landmark after a turbulent financial journey. Founded in 2012, the company rose to fame five years later when SoftBank ploughed $500mn into the London-based firm. The investment was the largest-ever funding round for a British startup.
Back then, Improbable was building virtual worlds for games and massive-scale simulations. SoftBank envisioned endless applications for the tech.
“Improbable’s technology will help us explore disease, improve cities, understand economies, and solve complex problems on a previously unimaginable scale,” said Deep Nishar, the Japanese firm’s MD at the time.
Despite the grand ambitions, SoftBank and Improbable struggled to monetise the tech.
The company tried to develop games, military simulations, and metaverse infrastructure. But the losses continued.
In 2023, Improbable announced another pivot. The firm would transition to a venture builder model.
Its first major exit was the sale of Improbable’s own games services business. In December, Ireland’s Keywords Studios spent a whopping £76.5mn on the MPG unit.
Improbable is now focused on building ventures in “cutting-edge sectors like AI, blockchain, and metaverse,” the company said.
Over the next two years, the business aims to launch multiple startups annually. Improbable plans to maintain equity in a high-value portfolio, contributing ideas, resources, and operational involvement.
According to Narula, virtual worlds will remain a business focus.
“Through strategic investments in both large partnerships and startups, we continue to advance the case for the metaverse,” he said.
“Our ambition is to shape the future, and our experience provides us with unique insights to do so.”