Invest in Monzo: Launching Our Crowdfunding!

some of your queries are like “how long is a piece of string” Im afraid :slight_smile: - if you invest your £1000 you would be entitled to just under 1000 shares - the shares would be at the moment very difficult to sell because there isn’t really a market for them - they are an investment for the future value of Monzo when they list or are sold, until such time, which could be 5-10 years they are virtually valueless promisary notes of owning part of Monzo - the value will be determined at this point by a market offering to the public or a private sale to a bigger institution - between 5 or 10 years from now- could be £ billions as total value which you would be entitled to a percentage of for your 1000 shares depending on how many shares were in issue and the price (value) of the share - or Monzo could have gone bust in which case you will have lost your money

Think of it like Bill Gates (or alternatively Clive Sinclair) sat in his garage making a computer and wanting investment to carry on with his work, you are putting money into his computer business at the start for a relatively large percentage of the company in shares, with a small valuation because he isn’t making any money, but you like the idea and believe its potentially a good business , a week later he hasn’t sold any computers but you want your money back thinking you’ve invested for a week wheres my profit , there is no profit in the company because it hasn’t sold many computers so others don’t feel inclined to buy your shares - until Bill sells his computers the business only has potential, nothing more, he then sells more and more computers, but still needs money to make more computers to get bigger and eventually offer his company to public investors, at that time if you had retained your shares you could sell them and realise the value of the successful business

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While you’re waiting for a reply from the Monzo team, you might be interested in Ian’s comments on this, I think he does a good job of covering the likely options here -

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Ah I see. Thank you for clarifying that. It looks like these investments are really for those that want to be a part of Mondo’s growth as a company. In my opinion, waiting 5-10 years for a mere £1000 investment seems crazy! (Maybe this is why there is no explanation on this matter from the Monzo team) Anyhow, thanks again Ian for explaining my question with a nice example :wink:

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but you are confusing your “mere” £1000 investment for 5 years as not worth it - you could buy a house when I were a lad for “a mere” £4000 now that house is worth £400,000

it depends if you can “spare” and forget about your £1K , if Monzo got to a £1bn valuation your grand could be worth maybe £10K in 5 years thats a very healthy return on investment when interest rates are less than 1% in the bank where your money is relatively safe - lol if Monzo got to be a £ trillion your 1K could be worth 7 million pounds :slight_smile: and you have done nothing more than bet £1k on what you consider the companys potential could be - also it could be worth nothing because they have gone bust

  • consider Metro banks valuation of about £2.75bn with 7-800,000 customers not making much money from them yet
  • or Barclays Bank valuation of £38bn
    and pick any number in between for Monzo :slight_smile:
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I think thats a bit of a stretch Ian :sweat_smile:
Our shares will dilute as more money is invested by companies and individuals so unless we’re continuously investing, we all not be able to maintain our initial percentage share holding (from Tom’s explanation above). So there is no way our investments grows like that.

Then again, Monzo has thrived in this industry so potentially a £1bn valuation is not so hard to believe so the returns on our investment may be huge :sunglasses:

I’m a user of MoneyBox (Spare change investment app) and I’m able to see my investment portfolio grow everyday. Gives me a little smile in the morning when I see that extra 50p growth in my investments for example. I had a strange thought that somehow Monzo would work in a similar fashion.

For the benefit of anyone who’s new to investing - the numbers being thrown around here are both very optimistic, in my opinion & impossible to accurately predict.

That’s why it’s important to make your own assessment of Monzo’s potential.

Ian & Jin know this already (I assume :wink:) but others may not :grimacing:

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Those worried about losing money should consider the one thing I know about investing money.

“Don’t invest more than you can afford to lose.”

If I get to invest I more or less consider my £100 (I can’t justify a grand I may never see again) gone unless I hear otherwise in a few years.
To be honest, I just want to be part of it.

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the point I was trying to make when asked by several posters how much will my shares be worth after X time is nobody really knows and it will be any where from £0 to who knows - at a £trillion valuation - which admittedly is pie in the sky - and with two further rounds of dilution of maybe 15% and 5% your £1000 investment would be worth about £7m - you can pick any numbers you want really according to how you perceive Monzo :slight_smile: at £1bn valuation which is definitely feasible _In 5-10 years time _ - in my opinion - your shares again with the same dilution above would be worth about £10,000.

  • “we all not be able to maintain our initial percentage share holding (from Tom’s explanation above). So there is no way our investments grows like that.”
  • sorry Thats exactly how our “shareholding” grows - as the company grows your £1000 grows - share number is somewhat irrelevant, share price is the end number I can have 1000 share worth £10 / share or 1p / share I still have the same number of shares

"and pick any number between for Monzo :slight_smile: " was a frivolous remark with a smiley face after it :slight_smile:

I was also trying to say, maybe unsuccessfully :slight_smile: - some people seem to think they can pay £1000 this year for their shares and sell them on their next birthday for £2000 or put whatever figure you want in there - they are extremely unlikely to be able to - in my opinion , but don’t seem to realise this.

  • I wouldn’t pay £34.29 for 1 share in Metro when they aren’t making much money - some people do - maybe they see potential in what Metro are doing

  • as Andy says the usual mantra for share dealing - don’t put any more money in than you can afford to lose

  • and " I just want to be part of it " - with the money I can afford to lose is the right view to take

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Apologies if this has already been asked…

Is this investment classed as an EIS?

I don’t believe its eligible for EIS tax reduction unfortunately :frowning:

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No it is not EIS or SEIS

EIS doesn’t apply to investments in financial institutions.

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Thanks for the info guys!

Will it be possible to opt out of the investor card?
I’d rather just have a regular one.

If you’re worried about the ‘investor’ text being too flashy, it’s not. You can’t see it in normal light from most angles - that’s the case with the current cards anyway…

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@tom I have a question for you guys, couldn’t see anything on it.

Can you summarise equity e.g. by company/individual, class of share and what voting rights they have?
How much equity will you guys at Monzo own after this round?

@tom did promise that in another thread:

Hopefully we will see it some time soon…

Is there a way of investing even though the date for the crowd funding has been and gone??

Unfortunately not. You’ll have to wait until the next round of crowd funding comes round.

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