Crowdfunding (Upcoming 2018/19 Round) - Updates

With a post-money valuation of £1,085,000,000, shares are valued at £7.71 per share.

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It has been like that in the past, to be honest.

The very first round was so oversubscribed that it crashed Crowdcube’s website. Monzo had to postpone the raise for a few days whilst they worked on helping Crowdcube upgrade it’s infrastructure to handle the traffic. It was first come first serve, and the entire £1m was raised in 96 seconds, making it the fastest £1m raised via crowdfunding ever.

In the second round, to try and make it fairer, Monzo allowed everyone to “pledge” how much they wanted to invest, and then they choose pledges randomly as a lottery, to give everyone a fair chance. There was mixed reviews on this approach, though.

There was a 3rd round which was an anti dilution round, only available to existing shareholders with a cap proportional to the amount they’d previously invested.

This’ll be their 4th crowdfunding round, not entirely sure how they’ll go about it yet. I predict it’ll be on a first come first serve basis like the 1st round, but it’ll only be speculation.

Monzo is a great investment. Even valued at £1bn, there is so much more potential for their valuation in the future. I can quite easily see a world where Monzo is valued at £100bn. And knowing there’s potential for the share value to increase another 100x is really quite exciting.

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Yeah, I’d set it up if I were you, in case you hit any snags. While this won’t be the same for the new round, in the very first round the people who managed to invest in the 96 second window before Crowd Cube went down had been through that process already and only had to click one button. Good to be prepared.

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I don’t believe that’s correct. The extra shares will have been bought at the pre money valuation.

By my calculation there’s now ~116,000,000 so divide the post-money of £1,085,000,000 and you get back to £9.35.

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It would be awesome if existing holders could sell during the next fundraiser to keep dilution down and allow some to cash in.

In the past staff members have been allowed to sell up to 10%. But this whole “dilution” idea is a really pernicious misnomer. Dilution only matters if maintaining a particular percentage confers other rights, such as having a board seat, access to board meeting minutes, etc. That doesn’t apply to crowdfunding investors. @tom explained it well, and if you don’t believe that each subsequent round acts as a separate investment, then please refer to the spreadsheet in this post, which outlines very clearly that separate subsequent investments operate completely independently. Monzo are nice and allow you to maintain your (arbitrary) percentage if you choose to, but you need to evaluate each round on its own merits. “dilution” does not make you poorer in any way.

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Bear in mind that crowdfunding investors in each round have been allowed to buy shares in all subsequent rounds that were open to crowdfunding, ahead of the crowd (but not disproportionately). There was also a micro round (Round B) which wasn’t open to crowdfunding investors, as it was a smaller round to increase working capital.

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But… but… I want to maintain my 0.000001% share in this company!

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Hi if anyone is interested I have shares for sale. PM me if you want more info

Oh, they are charging fees for investing through their platform.

I wonder if Monzo will be raising through Crowdcube or ‘doing their own thing’?

Through Crowdcube apparently. :open_mouth:

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So if Monzo raise £20m then Crowdcube will get £300k from investors in fees?

I’m out! :-1:

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Completely agree. Bit of a rip off that Crowdcube are looking to charge investors and the companies raising funds. Especially given that Crowdcube’s track record of generating returns for investors is sketchy at best (often down to a lack of due diligence carried out by Crowdcube).

Maybe Monzo will negotiate an exception to the general rule given the size of the raise…

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Wow this isn’t cool.

Not sure what costs they’re covering that need to be a % like that?

The company raising funds already has to pay the Stripe fee, and Crowdcube already charge the company 7% ex VAT.

Pretty poor that they’re now charging another 1.5%!

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Would be brilliant if we could invest through the Monzo app bypassing CC completely.

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Completely unacceptable that crowdcube are charging 1.5% - Monzo need to look elsewhere.

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I hardily think 1.5% is an astronomical fee to charge especially if the investments are capped again…

I couldn’t disagree more. The costs of investing are fixed, they are not proportional to the amount invested. This is a simple money grab.

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A lot of conjecture here. Why don’t we wait and see what deal Monzo have struck with Crowdcube?

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