Ah I meant the working on the £35bn. How many customers would that need, etc…
Haha that is beyond my financial capability, I will leave that challenge to Monzo themselves.
Have you seen it quoted anywhere?
Actually let’s have a stab, for fun.
We have 450,000 customers (if I recall correctly)
So mc of 280 million with 450,000 customers and assuming direct correlation between customers and mc.
Then 35 billion / 280 million = 125
So number of accounts needed is 450,000 * 125 = 56 million active account needed
I assume that is an over simplification but if true then we need a customer base just under the size of the U.K. population …
1 Like
No not seen it quoted anywhere, just playing numbers. But hey if Facebook can reach 100’s of bullion’s then we can all daydream
I think if a Facebook user is worth $250 ($500bn mcap/2bn users) and a Tencent user is worth $500 ($500bn mcap/1bn users), then a monzo user must be worth at least $1000, maybe 2-5k per user.
Facebook has some good data but their demographic has moved from the US to anyone in the world (bringing down average incomes of users) and how much can you sell on a social media feed compared to a financial hub where people are managing their life savings, mortgages etc rather than looking at photos of cats and sending ‘happy birthday gifs’.
Tencent is something much more comparable but their users are mostly from China, where the average income is, correct me if I’m wrong, less than a third of users in the West. So clearly if users are earning an average $15k a year they will be much less valuable than ones earning average of $45k a year.
If Monzo can reach their desired scale of 1bn users in the West, then assuming those average user values they would be worth about $1-2trillion.
1 Like
Hmmm - I think you may have rather missed the point, and cultural value, of Facebook there 
much prefer trillion to billion , a much nicer sounding word 
1 Like
I hope that this time I’ll get to invest. Last round i wasn’t lucky 
.
The Crowdfunding Lead job is no longer listed on Monzo’s careers page. That was up there for a long long time so no doubt they have hired very carefully for that important role.
Looking forward to their introduction, hearing the plan develop and hopefully being able to see ideas shared between Monzo’s new division and this brilliant community.
Hey Simon, how do I ensure I pre-register for the upcoming 2018 round?
I too want to invest in 2018. If I can register now even better?
1 Like
What I think would allow Monzo to be sure of hitting their funding target and also allow everyone the chance to invest would be a moving investment limit over time.
Eg. If monzo want to raise £30m, instead of saying anyone can invest up to £1000 and when it’s gone it’s gone (which in theory means it could be the first 30k pledgers get to invest then it’s closed… why not do it like this:
Day 1 everyone can pledge up to £100 in the app (if 50k people pledged that then that’s £5m pledged.)
Day 2 the limit goes up to £500 (if 20k of those people above decide to increase to this then total pledged is £13m)
Day 3 the limit goes up to £1000 (if 10k of the people above decide to increase to this then total pledged is £18m)
Day 4 the limit goes up to £2000 (if 5k of the people above decide to increase to this then total pledged is £23m)
Day 5 the limit goes up to £5000 (if 1k of the people above decide to increase to this then total pledged is £28m)
and so on…
If the number of pledgers underwhelms expectations then you can just increase the limit higher until filled, as there are definitely private investors who would want £10k, £100k, even £1m+ chunk of Monzo. That is still a fraction of a percent of the company so Monzo doesn’t need to worry about unknown entities building stakes as they may have been worried about by limiting earlier rounds.
This may be a dumb idea but good to get some ideas out there, rather than no ideas and then everyone moan when it doesn’t work out fairly for them. I would be interested to hear other people’s ideas as to how this one can be done fairly. As we have seen in previous crowdfunding rounds, the deadlines quickly creep up and Monzo haven’t previously had a lot of time to consider how they can balance off securing the funding quickly and easily as well as keeping all the potential investors happy, so it would be a good time to discuss it now.
Edit: or maybe rather than various days of coming back for sub-rounds Monzo could ask people however much they want to pledge and then run these rounds on an engine to complete it much quicker. Eg. It could first pick out everyone who wants at least £10 and allocate that, then if the total is short of £30m then run the list again for everyone who wants at least £100 and allocate to them, then run the list for £250 etc etc until target reached.
In order to prevent false pledges and multiple registrations like in past rounds maybe Monzo could leverage its own platform. If pledges can only be made in app then that is a real, verified person making the pledge, unlike round 2 where people made duplicate email addresses to pledge multiple times on Crowdcube. Also, to ensure pledges are real maybe the amount pledged can only be confirmed if the user transfers that amount into a pot which will be locked until the investment is completed? If I pledged £10k and I was only able to invest £1k then it would take £1k from the pot and return the other £9k when pot became unlocked.
4 Likes
Can you do multiple pledges?
I’d hope Crowdcube have the means to recognise multiple accounts for the same person? I imagine there is not much can be done if say a husband and wife both bought shares, but one person shouldn’t be allowed multiple goes.
Hey Fateha, it’s not possible to pre-register just yet, I’m afraid!
I will say this - we are hugely aware of how much interest there was in the last round, and how disappointed many were who didn’t get the chance to invest. So, with this round, there will be ample notice given before the actual round starts 
If you pay attention to the forum and our blog, and even the app itself, you’ll have no excuse for missing out!
5 Likes
It might be a good idea to give priority to the people that registered for the last round but didn’t get selected?
Last time we had two weeks to register and we all knew it was coming for weeks if not months. I don’t think it’s about having enough time to decide wether or not you would like to invest but more given the opportunity to.
1 Like
All these problems would be solved by an open round that lets people invest as much as they want up to a limit per person.
Quickfire FAQ:
- Why can’t they just hold an infinite size open round?
- The EU has a cap on funding without a Prospectus
- Why not just have everyone get a £10 share?
- £20 per investor in admin charges somewhat negates the value of smaller shareholders
- Gimme some (unverified) percentages:
- 16% of pledgers got to invest in the last round
- 34% invested up to the equivalent of equal share investment (£60)
- 51% of the previous round, reinvested in the last round
@kennygrant Setting the limit of £60 when it costs £20 means you cut a 1/3 of the total investment to admin costs
.
But it might all change? It might not? We will have to wait and see…
1 Like
Why not produce a prospectus so the limit can be lifted?
4 Likes
My thoughts exactly. Anything else seems a bit pointless and fiddly. Depends how much work a prospectus is though and perhaps with the new rules they won’t need to. A limit on small holdings would be perfectly reasonable, min of £100 for example, trying to manage a stampede of investors at £10 each seems to be the problem and a lower limit would help that.
Figures for the last round are not very useful as investments were heavily constrained and it underfunded as a result.