Will existing investors receive the same perks as new investors?
Please forgive my ignorance re this offer. I really like the Monzo idea and way the business is heading. I’d like to invest (I invest in lots of things), but I’ve not actually used crowdcube before. I watched the pitch. It’s all good and well, but what are we actually getting for our investment in addition to the card (which is neither here nor there for me really)? This is not clear to me. We are getting an equal investors stake in the company for our investment, per the institutional investors? That’s kind of how I read it, but really, based on the info explained, it was read as pretty much ‘donate’ your funds!
I would I think be very interested in investing in Monzo as a potential shareholder, if that is effectively what this is?
OK, I just found an old thread for the original funding and it seems it is indeed a shareholding. If incorrect, please let me know.
This is btw a fantastic idea. Extremely loyal clients and interactive as they own a chunk of the bank. Well done Monzo.
yes you would be getting an equal pro rata share stake in Monzo - this funding round was for 22m ish of which the public offering is 2.5m so roughly 10% - I think the 22m buys about 25% of Monzo prior to any further dilution - so the 2.5m would buy roughly 10% of the round at roughly the same values as the institutional investors - your shares are kept in an investor account with crowd cube - last funding round investors received 1949 (ish ?) shares for £1000
edited to be 22m not 25m - my mistake
Another thing to clarify if you’ve never invested on crowdcube is that you have ages until the money is required/taken from your nominated bank account. In 2 weeks they will open the campaign on the crowdcube site and the money will only be taken many days after the campaign finishes. i am pledging now but will probably think about where that’s going to come from in a week or two.
Just thought that might be useful info for new investors as liquidity is a common issue when great opportunities spring up.
Edit… see colin’s reply below, 48 hours to fund it after the confirmation on 14/03
Do you know how many shares £1000 will get you this time round?
I’m not sure that’s going to be the case this time - the campaign says you have 48 hours to finalise your investment after the 14th March deadline.
So the new investor card will still be coral color? I remember there were talks to have a different color for new investor cards, something more sleek like the original design.
I’m trying to understand how this investment scheme works.
Can you make a hypothetical example based on a 1000£ investment?
How much of the company would I own?
How would my return/capital growth be calculated and paid out?
Does Crowdcube have a long signup process with different verification steps or can I pledge, wait to get approved (if I am lucky) and then sign up to invest?
Tom has explained Monzo’s growth so far & what share of the company you would be purchasing, if you invest £1,000 or £100 -
This is true, so in the case that anyone who is picked from the ballot decides not to go ahead, we can select other pledges and offer other people the opportunity as quickly as possible after the deadline. It’s likely we may have to do this a couple of times to reach the whole 2.5 million.
You don’t need to set up Crowdcube account until you know if you’ve been approved or not. Makes sense actually!
this link (posted earlier in the thread by alex) suggests the shares in this round are worth just over a pound so for £1000 you would get just under 1000
As the pledge is non-binding I was wondering if that means that I can pledge £200 and if I would get approval on the 14th I could invest only £100 or even £300?
presumably that would depend if they got their full pledge or were short or over subscribed I would pledge what you want to invest
So you mean I could go lower but I could only go higher if they short on investors or if people have decided not to invest?
in theory I would suppose that yes but I don’t really see them being short of investors