Crowdfunding (Upcoming 2018/19 Round) - Updates

Hey Tushar.

I’m afraid we can’t comment on any specific details of the future crowdfunding round as details are still being worked out. When there’s new info we will post it here :slightly_smiling_face:

Interesting that it’s still open after the rejections have gone out! How does the process work?

You can definitely be proud of building a company that people are queuing up to invest in before they’ve seen the share price. Well done Monzo!

1 Like

Came here to ask for there to be no cap - it’d be great if people could just invest as they wish, if that’s possible, from £10 up. Would be lovely to see investments within the app somehow too!

It would only be a link to the relevant broker (e.g. Crowdcube), but yes.

Uncapped investment limit? Wouldn’t that throw the doors open to takeover potential or at least bod losing majority holding?

Maybe no cap on total investment but cap individual investment as before.

If you made it unlimited per investment, the total investment from all investors would (and always would) be capped, which is when the round closes. This is how they avoid the takeover, because they only create enough new shares at the relevant price to raise the required amount while keeping control using the existing share capital. For example, if the new shares represent 1% of the total, even if you bought them all, you’d only have 1%. Within that, it doesn’t matter whether the 1% is owned by 1 or 10,000 people. It’s just a balance between the amount of paperwork and the desire to please those who want to invest.

I think that ship has already sailed regarding majority shareholding - excepting that passion capital are on Board of directors and they have been a major investor from the start - the joint founders have already gone below majority shareholding

seed round sold roughly 22% of company leaving founders (BoD ???) 78% of their £10m company valuation (£7.8m)

funding round A sold another roughly 20% leaving founders 62%

extra funding for more cards sold roughly 10% leaving founders 56%

funding round C sold roughly 25% leaving founders 42%

funding round D sold roughly 20% leaving founders 33% of their £280m company valuation (£92m - still not bad for 18 months of hard work :slight_smile: )

1 Like

Sweet return :slightly_smiling_face:

How many shares could you have if you had invested in every round so far?

that would depend on how much you invested initially and whether you then took up/ increased / decreased your allotment in further rounds :slight_smile: you could in theory have 67% of the company if you were the sole investor with very deep pockets and we know there was more than one investor in each round

Sorry I meant for us mortal folk. If you had invested in every crowdcube round how many shares?

maximum entitlement I think was about - 2000 shares @ 50p ish + 1000 @ £1 ish + 450 @ £2.35 ish so 3450 shares ish - slightly less from memory for £3000 - now selling for £2.35 / share in the last round so roughly £8000 for your £3000 "investment " over the 18 ish months since the first crowd fund

Can’t argue with that return. And that’s at a market cap of £280m. So should Monzo hit the £1 billion then you’d be looking at almost £30,000!! (Roughly) and assuming no further dilution (which there will be)

1 Like

lol …why stop at 1 billion ??? for your 3 grand :slight_smile:

Well if Monzo truly are on a global mission then all you need is say a £30 / £35 billion market cap and you’ve just made £1 million!

It really does pay to get in early ha!

1 Like

Ha ha. At least I hope that was a joke!

1 Like

Care to show your working? :wink:

I’d love to know how many people have been on that journey - maximum every round since the start… how many can there possibly be?!

1 Like

Probably a fair number, because I don’t think the first round was “pot luck”, although I realise I’ve been corrected in the past. Those who conquered the 96 seconds were rewarded with first dibs at both the subsequent rounds.

Ok a bit of fun (for those with shares). Assume no future dilution…

Today sp = £2.35 at mc = £280m
So mc of £1 billion gives a sp = £8.40

If you have 3,400 ish shares

3,400 * 8.40 = £28,500 (approx) at mc of £1 billion

So a mc of £35 billion is 35 * £28,500 = £1 million (approx)