Here’s a shocking truth: despite riding the wave of AI hype and securing a jaw-dropping £1.4 billion valuation, Euan Blair’s Multiverse is bleeding money—to the tune of £63.3 million in pre-tax losses last year alone. But here’s where it gets controversial: is this a bold investment in the future of work, or a cautionary tale of overhyped growth? Let’s dive in.
Multiverse, the brainchild of Euan Blair (yes, son of former UK Prime Minister Tony Blair), has been making waves in the workplace training sector since 2016. Originally focused on matching non-university graduates with employer-funded apprenticeships, the company has pivoted to retraining mid-career professionals. With clients ranging from the NHS to private sector giants, Multiverse claims to have worked with nearly 28,000 apprentices, primarily in the UK. Their mission? To ‘equip the workforce to win in the AI era.’ Sounds ambitious, right?
And ambitious it is. Despite a 36.3% surge in annual sales to £79.6 million (up from £58.4 million the previous year), the company’s losses have widened. Administrative expenses soared from £106.1 million to £129.3 million, pushing pre-tax losses to £63.3 million. Accumulated losses now stand at a staggering £178.3 million. But here’s the part most people miss: while operating losses inched up from £63.7 million to £64.6 million, Multiverse insists it’s ‘trending towards profitability’ thanks to efficiency gains. Their EBITDA (earnings before interest, taxes, depreciation, and amortization) losses narrowed from £61.3 million to £59.7 million—a silver lining, perhaps?
What’s driving this growth? Multiverse credits the surge in demand for AI and data skills as companies scramble to boost productivity. They’ve even started offering five-figure prizes to employees who develop AI tools that save the company time and money. Talk about putting your money where your mouth is! But with cash balances dropping from £135.4 million to £81.8 million in just a year, how long can this spending spree last?
Here’s the controversial bit: while Multiverse touts a 37% rise in revenue per employee, they’ve also slashed their headcount slightly and paid nearly £1 million in compensation to 55 laid-off staff. Is this the cost of innovation, or a sign of unsustainable growth? And what does it mean for the thousands of apprentices relying on their programs?
Euan Blair, who owns about 20% of the company, saw his pay dip slightly to £246,000. But with heavyweight investors like General Catalyst and Lightspeed Venture Partners backing the venture, Multiverse isn’t short on financial muscle. The question is: can they turn their lofty vision into sustainable profits?
A Multiverse spokesperson insists they’re delivering ‘genuine productivity improvements’ for clients and themselves. But as AI continues to disrupt the job market, one has to wonder: is Multiverse ahead of the curve, or just another overvalued unicorn? What do you think? Is Multiverse’s strategy a recipe for success, or a risky gamble? Let’s debate in the comments!
