Monzo in talks to raise 300M at a £3 Billion Valuation

[breville_monkey]

@stephenjames

I think 5 years is a respectable amount of time to tie my money up, so Monzo … ?

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).

[Chuits]

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.

[michaelw90 (Michael)]

I hear the continuous pipeline is where most of the value of Monzo is.

[breville_monkey]

@Chuits

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.

[andrewpclark (Andy)]

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 🧠

[bee]

You’re going to lose your minds over my next Monzo blog post about the continuous integration pipeline

[mjjsinvest (Matt)]

When can we expect it

[Dan5 (Dan)]

I heard it’s about a blockage in the continuous integration pipeline which caused a non-continuous integration and the end of the world as we knew it.

[DaveJ (Dave)]

So you’re the Flux ruined Dr Who now, thanks

[bee]

When can we expect it

I’m not sure. I’m having to interview all the big names. Tom Blomfield, TS Anil, Tim Apple. It’s important I get as much information as I can about our performant continuous integration pipeline and the non-continuity international blockages intercepting our amoritized complexity.

I do, however, have a blog post in the pipes that you might see next week

[Revels]

@bee

I do, however, have a blog post in the pipes that you might see next week

Is it about a bus?

[simonb]

@Dan5

I didn’t even know this was a thing

As I recall we made it for staff benefit in 2017-ish back when there was only a hundred or so of us!

[tsumaru720 (Simon)]

Since IPO’s have been brought up briefly in here - How would an IPO actually work for private investors… Namely, all our shares are currently held by crowdcube under a nominee account. Presumably they’d have to make arrangements with each share holder to move what you own onto a platform that deals with public shares?

Just curious how that part of it would work

[HoldenCarver (Nick)]

I’ve only found one case where a Crowdcube business has had an IPO:

https://www.crowdcube.com/explore/blog/investing/bidstack-lists-on-aim

In case case, it says shareholders were issued with new shares.

Crowdcube shareholders were issued approximately 7.25 new shares for each bidstack share held. The effect of this transaction and the current trading price is a potential five times return for Crowdcube investors.

[breville_monkey]

@tsumaru720

Presumably they’d have to make arrangements with each share holder to move what you own onto a platform that deals with public shares?

That’s called a stock market

It’s supposed Crowdcube would charge you a fee to put the shares into your name. I guess if you wanted to sell them you’d need to find a broker, maybe Crowdcube will recommend one

[Peter_G]

@breville_monkey

That’s called a stock market

I think they’re talking about a broker.

There’s normally one assigned for privatisations, IPOs and listed options.

[danbeddows (Dan)]

I don’t think that’s the case.

Companies pay a per investor per year fee to Crowdcube Nominees to look after voting, restructuring, keeping up-to-date investor info, and presumably exits. E.g on the multiple exits I’ve had via Crowdcube nominees (cash acquisitions) Crowdcube nominees have not charged any fee.

Recently (past 12 months) their terms have changed and any new investments made since the change are charged a % successful exit fee, but it does not apply retrospectively to previous investments before term changes. I imagine Crowdcube nominees will facilitate whatever is required for free when Monzo IPO.

[breville_monkey]

Interesting, didn’t realise that was a new development

[danbeddows (Dan)]

I just had a look for the success fee info and found it here: https://help.crowdcube.com/hc/en-us/articles/360001527460-What-are-the-fees-for-investing-on-the-platform-

It looks like it’s 5% of the profit on any investment made after 1st April 2021.

The success fee aligns our long-term success to yours, so is only payable if you make a profit on your investment; there are no annual fees for the ongoing support we provide once you’ve made an investment. If you make a return on your investment, you’ll keep 95% of any profit, and we’ll take a 5% fee for managing your investment over the years.

…

For example if you invest £10,000 and receive a return of £100,000, you’ll receive your £10,000 investment back, as well as 95% of the £90,000 profit, which equates to £95,500. Crowdcube’s success fee would be £4,500, which equates to 5% of the £90,000 profit.

…

Crowdcube’s success fee only applies to profits made on investments in businesses that opened to investment on or after the 1st of April 2021.

[Ralph76 (Ralph)]

5% is huge!!!