5%!
Also, this infers they are actually selling your shares and giving you cash. Obviously that’s how it works in a buyout but is that what they also do in IPOs? Be a shame not to be able to hold on to some of the stock
5% wouldn’t apply here though?
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You infer, the statement implies.
(With apologies for being an awful pedant.)
As for the IPO question, my previous post in this topic has a link to what happened in the only Crowdcube IPO I could find (all other exits were buyouts).
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So I assume in that case (if the investment was made after April 2021) then it would take 5% compared to the Ipo price
Hi Brandon,
Do you have any more news for us 
hihihi
- call me bee!!!
- the blog post is in the final editing stages1!!
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Thanks bee 
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Don’t you guys remember that time when Crowdcube changed the Investor Nominee Terms in their favour with no legal consultation for the investors as a block? And that those terms allow them to charge fees to “recoup costs” as confirmed by one of their line-level customer support people here? (notably no C-suite exec, and none of their legal council, put anything in writing, all we got was relayed “trust me it’ll all be fine” via said support rep. Pfffffft.), despite being paid a % of the deal in the first place? Nice double-dipping, there.
If 5% (!) is what they are expecting to get out of all new client investments, then I see no reason why they would not use the giant open door they wrote into the updated terms to do precisely the same in the case of any Monzo acquisition. Many people said exactly this in the thread, but, well, here we are.
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I could not agree more with this post. I was incredibly disappointed in the change, the dishonest marketing and PR around the vote, and the fact that Monzo distanced itself from it entirely.
That being said, I hope you’re wrong, I really do.
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I completely forgot about that thread. Just relived the whole thing - it was quite the car crash.
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Completely agree.
Surely it wouldn’t be possible for them to just add a 5% charge on our profits after the fact without having first stated explicitly such charges would be included.
Sounds like a lawsuit waiting to happen if it ever came to pass, one that they would lose, and that would destroy their company in time.
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They will have been through all of this internally first. They didn’t just decide to take 5% one day without consulting a team of lawyers.
I suspect it would end up a bit of a PR disaster - the Monzo exit should be something that Crowdcube can shout from the rooftops as a success (we might see smalltime investors making tens of thousands) but applying that fee could mar the press coverage significantly. Still, they’d make a tonne of cash.
Seems like they’ve given themselves the option anyway, we’ll see.
I couldn’t see 5% being taken out of recent exits such as Nutmeg and Pod Point, therefore if they amended terms just for Monzo only knowing that the payout will be big then that’s just dishonest and as some of the post suggest a PR disaster waiting to happen when Monzo does eventually IPO.
One would expect so; let’s hope there’s no funny business. If we see a blanket “5% to cover our costs” then people are going to call hard bullshit, and I think that they’re going face a class-action lawsuit. There are, obviously, some marginal costs in doing this, but we all know that it’s mostly (a) standard legal paperwork (company gets sold is not breaking new ground), and (b) disbursements to investors. Neither of those is going to come to 5% of the entire final sale price of the entire crowdfunded block.
options.monzo.com is down … getting ready to update with the new price maybe?
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They did file an allotment of shares with companies house last week from September, but it didn’t look like enough shares to be a raise and most were at nominal value (and 10,000 or so at the old share price). Still, it’s the kind of admin share issuing think companies do often do before finalising a big raise.
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FWIW - this was Monzo staff exercising their share options (if they wanted to) 
this happens twice a year.
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Ah fair enough. Who was lucky enough to have share options at 0.00001p I wonder 
Early joiners I guess.
Hope someone got good avice before actioning options at £7.70 though 
I’ll be honest: in spite of being an investor in CrowdCube, I lost a lot of the confidence I had in them when they encouraged their community to invest in CityMapper - one of my favourite apps, but which provided very little tangible information ahead of the investment round.
Instead, CityMapper sent repeated urgent emails, which, combined with the paucity of information made this feel like one of those scams in which the target is being urged to part with their money quickly before time runs out.
I felt the way they went about it about this was unethical, and that CrowdCube had a duty of care towards its investor community, but instead seemed to be prioritising their own short-term profits. Unseasoned and enthusiastic investors may have ended up investing without a full understanding of what they were paying for, and may still end up getting burned or losing money as a result.
This reflected badly on CityMapper. As the company supporting their crowdfunding round, this reflected even more poorly on CrowdCube which, with all its experience, should know better than to put its community at risk in this way.
Therefore, I’m sure they’ll abide by their legal obligations here, but feel they’re unlikely to go any further.
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