Announcing Our £22m Investment Round and Crowdfunding!

[duncang (Duncan)]

@Ralph76

Monzo just breached £5m in less than a day. How’s that supply and demand / risk appetite argument working out for you?

Well you conveniently ignored the fact that later users of a product are not as engaged as first adopters, doubly so when it comes to investing hard earned cash in it. But this is all moot - there are EU rules on max crowdfunding amounts, which will keep the ceiling artificially low (at least as long as Britain is in the EU…)

@Ralph76

I don’t need to look at a spreadsheet to know that if you have 1% of a ten billion dollar company it’s worth more than having 0.5% of a ten billion dollar company.

I think that it’s safe to say that your mathematical acumen is beyond reasonable doubt at this point. But here you paid ever increasing amounts to buy shares in future rounds in order to maintain your arbitrary percentage shareholding - which must be subtracted from any imagined profit. But this is a sideshow. The point is about whether it is possible to “protect” your initial shareholding.

This earlier post is directly relevant:

@duncang

I do not deny you your right to evaluate the merits of the current offering, and to make a further, separate, profit on that. But you should see that it is a quite separate investment and not making it will in no way affect your original investment. You cannot protect your investment from dilution.

If you were to use that archaic accountant’s tool, the spreadsheet, you could definitely see that the two investments operate totally independently. But I understand you, those numbers can be so complex. Best go with your gut feeling. Financial decisions based on emotional responses and arbitrary percentages are always the most sound.

@Ralph76

Yes you can, as I have just done. By purchasing more shares I have maintained my % share of Monzo. It might sound ‘arbitrary’ to you, but ask me when Monzo’s worth 10bn.

How rich will you be once they float Monzo? I think it’s going to be a lot less than you imagine ;-).

Let me ask you a question: would you buy more stock than you are currently allowed to? I think it’s clear from your posts that your answer would be a resounding “yes”. So, say you had a bit more money in your account than the £1k - say £10k. You see a great future for Monzo (a “10bn” valuation, no less), so you plough it all in. You’ve increased your stake considerably. Did you “protect” your initial investment in this case? Well, er, no, this has nothing to do with your initial investment, right? You made a completely separate investment, one that was much larger, and one that you paid twice the price per share for. You made two investment decisions at two different times paying two different prices. Your “protection” of your investment is actually one arbitrary point on a line which runs from £0 to £22m; it’s only in your mind that this one point has any significance, and once you expand past that you can see how this is, indeed, a separate investment to be evaluated on its own merits.

If you won’t take it from me then perhaps you’ll take it from @tom - after all, you do seem very keen on ploughing lots of money into the company that he’s running.

@tom

I was a Crowdcube investor personally in the last round. Like all other Crowdcube investors, I’ll look at this round now and figure out if it’s a good investment for me or not. What’s my appetite for risk? Do I have £870 spare? How would I feel if I potentially lost it all? Do I have better opportunities to invest £870 somewhere else? Can I afford to lock away £870 and potentially not have access to it for 7 or 10 years? To me personally, maintaining a precise percentage shareholding is much less important than making a sensible investment decision.