It’s not a conversion per se.
Right now, shares can’t be bought or sold. Once they list, that’s listing on a marketplace - meaning from there all their shares can be freely bought and sold at whatever price people agree on.
So you would be able to sell your shares then. Or not sell them. Or buy more!
Of course! I was more interested in the tax treatment - whether that, let’s call it event, would mean that capital gains tax was required at that point, or only when the shares were sold.
@andrewpclark has helpfully sorted that out, though!
When sold, assets attract capital gains tax on sale.
There may be other tax implications (eg inheritance tax), anyone owning a substantial anount will probably need a financial advisor
Raises are nearly always post, so £300 at a £3bn valuation would make sense, 10% dilution.
Assuming as such, you’re looking at closer to £15/16 per share (or perhaps even lower) difficult to calculate the impact of the down round on dilution.
For example, share price at £2bn (pre down round) was around £13.17 (from memory). Then Monzo raised a £175m at the £1.25bn valuation (assuming a hefty dilution from that).
You could probably work it out
£2bn / £13.17 = c.152m shares
£1.25bn / £7.71 = c.162m shares
£2.7bn (pre) / c.162m shares = £16.66
(I’d expect it to be there abouts or lower)
Would obviously prefer it to be higher!
I have £1.1bn @ £7.71, I think that’s the difference. Happy to be corrected, I was using articles from the time. The number is always lower than I expect. 
I didn’t even know this was a thing 
I’m sorry to report your entire (LSE listed) portfolio is currently worth £0, since the market is, at time of writing, closed.
Let’s not forget that Crowdcube investors don’t hold shares directly but via Crowdcube Nominee.
I think it’s unlikely that people will have a choice to keep or sell the shares. I think the nominee will decide for them. Maybe there will be a vote?
I have incredibly limited knowledge on the subject and even less on Crowdcube, but surely this can’t be right?
I think Company will triple in size and don’t want to sell my shares at £x because I believe they will hit £y but they’d sell them because others voted to sell?
That is true. If the portfolio can’t be traded, it’s worthless. When the market opens, the portfolio has value again. Compared to when the market closed the previous night it could have more value, the same value, or less value.
Imagine what would happen if the market didn’t open, and the portfolio could never be traded.
They do hold the shares, in an exit I believe the terms are they will transfer the shares to you. They’ll also charge for that though.
As you are the beficiciary owner, if they made decisions on your behalf they could be liable for any losses, so it’s unlikely they’d do that and it’s not really their model anyway. The big win for them is that on an exit they get to charge 2% or whatever of the exit price.
By the way, if you are intent on working out your values like this you should at least take into account the unexercised share options which are about 11 million shares, I think. Because I’m the event of an exit we’d expect all of those to be exercised.
So currently there are effectively 173 million shares + share options making the current quote unquote ‘value’ closer to £7.20.
Not that it’s a huge difference.
It would be lovely if Monzo allowed people to sell during this round? I’ve held my shares for over 5.5 years and I’d like to see some return on that now.
I think 5 years is a respectable amount of time to tie my money up, so Monzo … ?
That isn’t how it works.
It can do, though. I think Chip and Revolut have included buy out options for crowdfunders in the past.
You should never assume any returns at all for crowdfunding shares including Monzo’s. There’s still a chance your money is lost (a smaller one now, but not a negligible one).
It is how it works.
The company can decide they want to allow some crowdfunders to sell during a new round.
Revolut did it and Freetrade did it too not long ago.
Many people here are saying that if you can’t sell or LSE is close it means the shares are worth nothing. Well you guys are confusing value with liquidity. Some assets are more liquid then other but that doesn’t make them worthless. Say you want to sell your house in the middle of the night. You won’t be able to do so.Does that mean your house is worthless?
It is possible to sell Monzo shares; It’s just a bit more difficult then a traded stock because Monzo has put restrictions on how you can sell their shares. That’s pretty much it.
Saying that they are worthless because you can’t sell would mean the software they dev, the tangible assets they own etc are worthless. I don’t think so.
You are right of course, even Monzo has a liquidation value. The trouble with that is it’s probably a few pence a share. So not sure what it would help indicate.
Great article by Simon Taylor discusses Monzo raise and other bits and bobs right at the end. Fintech 🧠 Food - Oct 31 2021 - Mastercard does Crypto, Monzo gets its Mojo back and why Money 2020 was a Changing of the Guard. - by Simon Taylor - Fintech Brain Food 🧠