British entrepreneur to make £1.3bn as Cazoo reveals £5bn US listing – live updates

Online car dealer Cazoo has secured a mammoth $7bn (£5bn) valuation in a US listing, netting founder Alex Chesterman an estimated £1.3bn.

The online car seller, which was founded less than two years ago, is to be taken public in a deal with an $800m Special Purpose Acquisition Company. Cazoo lets customers buy cars entirely online which are they delivered to their doorstep.

The deal will add £1.3bn to Mr Chesterman’s wealth by virtue of his roughly 25pc stake in the car company. Other shareholders include the parent company of the Daily Mail. 

Elswhere today, Deliveroo has trimmed the top of its listing value amid a revolt by investors.

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7:36AM

Full speed ahead for Cazoo

Good morning. It is a little over 24 months since it was founded, by already Cazoo has blown through all expectations and now is set to join the SPAC mania in the US with a float that will value it at £5bn.

Founded by Alex Chesterman, the Zoopla founder, Cazoo aims to transform how car buying is done online by making the experience entirely virtual – with the car delivered directly to your door.

Cazoo is expecting revenues of $1bn this year and has grown to 1,800 people. It has so far delivered 20,000 cars.

7:21AM

Five things to start your day

Five things to start your day

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2) Spy chiefs plough £100m into British tech firms The National Security Strategic Investment Fund has upped the number of funds it backs from a single known fund last year to a total of seven investment firms.

3) Digital GP app Babylon works with Citi as it mulls $4bn US listing News of the relationship comes as the latest sign that Babylon is gearing up to pick New York for a float 

4) UK’s OneWeb battles Elon Musk in broadband space race Fears are growing for OneWeb as Elon Musk’s SpaceX makes rapid advances in the satellite broadband race

5) Spare us the talk of democratising money – Bitcoin is about getting rich Cryptocurrency has mainly served to make a small number of people wealthy, making its value as a world-changing financial protocol questionable

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