A notice to our Crowdcube investors 🤗


(Dan) #38

Apologies, my words are assumptive.

I should of said:

“it’s @beningreenjam’s argument that investors should just accept the dilution, without the preemptive rights - if there are no shares left after existing shareholders purchase their own.”


(Ben Green) #39

No problem. I think we’re hopefully coming to agreement and it’s all been civil so no apologies necessary.

The first and only round so far reached its target in 96 seconds so a little concern for opportunities of prospective investors is justified. However the next round is expected to be double or even triple that of last time so hopefully won’t be an issue.


( surohpotsirhC - The thinking man's Troll) #40

Is it possible for existing card holders to pre-invest using our cards? I really want to invest on the next round as I missed out last time. I’d really like to put aside a certain amount on my card that is authorised for investing in Monzo as soon as I can.


(Christopher J. Sladdin) #41

@tom, glad to hear that you will look to involve both existing investors and those who didn’t manage to invest last time. Unfortunately, I was too slow to invest last time despite having the email open within a few seconds of it arriving. Nevertheless, as someone who has been very active in the community and in suggesting new feature ideas (which I’m delighted have been incorporated), I would love to own a small stake in the bank I’m helping to build. As such, it would be great to see a way that those of us who are active on the community get early access to invest before you release shares to the general public. Seems only fair.


#42

Existing holder here. Not overly impressed with this placing. Here me and @iansilversides were debating whether the 2017 fundraising will be at £100m or higher valuation with all the progress made, and you’ve slipped in a sizeable dilution to insiders without opening it to the market to find the real valuation. It is slightly shocking that you’ve had to suddenly negotiate a ‘bailout’ at what i personally believe to be a low valuation, without time to open it up to other investors. If it had been foreseen you could have added crowdfunding and other investors and easily got a much higher valuation and therefore less dilution.

I don’t think you can say shares are now worth more. The implied valuation is 50% higher, but look at Powa and their implied valuations going up by 50% every time their investor gang topped up until it went pop. You can only really say shares have gone up if they are tradeable and they are trading higher. The only thing you can say for certain is that you have overspent and been forced to heavily dilute.

Not baulking at a ‘higher valuation’ but i really look forward to the day you open your valuation to market perception rather than undervaluing yourselves.


( related to Monzo CEO, Investor in Monzo ) #43

here

please don’t think Im trying to teach anybody to suck eggs - but as far as I understand - as a crowd cube investor myself

Not sure I agree with “heavily diluted” - every funding round will see original investors shares diluted - depending on what position Monzo is in this will decide the dilution that Monzo has to sacrifice - bearing in mind it is the founders shareholding as well that gets diluted so they want a good strong deal for their benefit as well , if it was for 10% this time - or 20% or 30% it would see the original crowd cube shares being worth .0003 (was it ? , cant remember) now after dilution being worth 0.00027 , 0.00024 or 0.00021 of a much bigger pie.

If Monzo goes from 50,000 users to 200,000 users in an accelerated timescale because of this extra funding provided by Passion everybody benefits , and to deal with one investor providing £4.8m rather than 4800 investors with a grand is obviously far easier for Monzo, albeit possibly disappointing for some previous crowd cube investors wishing to retain their original level of stake.

It will obviously be a very touchy subject on the next funding round, if as Monzo suggests its going to be another part public offering- which worked so well as an advertising platform for Mondo last time, to not P off original crowd cube investors wanting to keep their stake level , and at the same time not P off people that wanted to invest but didn’t get the opportunity, and not P off new investors - good luck with that team Monzo


(aboshoff) #44

Possible solution to that conundrum would be to increase the crowd funding portion in the next capital raising?


#45

Hi Bailey,

As somebody who narrowly missed out (by seconds) on the last funding round, and therefore someone who has always wanted to invest, will there be any considerations for people like me in the next round of funding?

Thanks

Dave


(Matt) #46

Hi all :wave: been using my beta Monzo card for 6 months, in fact just been awarded a golden ticket and would love the opportunity to invest! Be great to get some sort of priority.


(Colin Robinson) #47

Yeah, we get 100 seconds this time instead of 96 to invest :slight_smile:


(Joanna Witt) #48

Can I ask how 75% of shareholders waived their preemption rights. I didn’t and only got the email last week?
Also I haven’t yet received the original articles of association and investor agreement. I only have the statement of beneficial ownership. It looks like crowdcube investors have been bumped down to the bottom in the case of a sale/payout?


#49

Not sure what an investor agreement is but here is the articles of association https://beta.companieshouse.gov.uk/company/09446231/filing-history/MzEyMjMwNTYzMWFkaXF6a2N4/document?format=pdf&download=0


#50

CrowdCube investors only make up about 3.33% of the total investment in the company if I remember rightly so a few directors and their main institutional investor will easily bring in that 75%


(Alex Sherwood) #51

Following on from Richard’s comment, this was mentioned in the Slack developers community too (James is a Monzo employee), the rest of the comments are from other Monzo users but look about right -


(Josh Bray) #52

Wait. There’s a slack community???


(Alex Sherwood) #53

I should have said (I’ve edited my previous post now), it’s the community for developers so mostly tech / Monzo integration chat but you can sign up here.


(Josh Bray) #54

Ah right, I dont really do too much developing outside of work, so i’ll pass. Cheers though :wink:


(Patrick Feltham) #55

I’d love to invest in early 2017. I’d there somewhere I can sign up to be notified?

Any preparation I can do to be ready for when it does happen?


(Josh Bray) #57

Just make sure to keep an eye on all communications from monzo. They will give everyone enough notice


(Ben Green) #58

Out of interest, roughly how much notice did you get before the previous round?