Monzo has a responsibility to its investors to maximise value by ensuring the effective deployment of its resources, navigating within and leveraging the laws and regulations of the land. Given this, I think Monzo had a duty to furlough some of its staff, if this served its long-term objectives. Tom is not the only investor here, and I’m uncomfortable with the assertions you’re making. If this was just about money, Monzo would have been bought out a long time ago.
Monzo seeks to maximise its impact on the communities it serves. It is beyond debate that Monzo’s practice of low charges and transparency, combined with the breadth of its adoption within the UK, have contributed more than any other bank to changing the banking landscape for customers, and resetting the expectations they have from the industry. In my opinion, this has far more relevance in terms of Monzo’s impact on the UK.
It’s quite subjective so there will be differing opinions, but personally I think Monzo have gone about it in a very classy way and showed they are a compassionate employer, while also balancing other stakeholders’ interests.
I have two jobs and one of my employers just dropped me an email a few days before the furlough scheme was even announced, informing me that sales have slumped and I’ll not be required until further notice. The other employer sat on the fence for a couple of weeks then came up with some crazy plan to work one week then have a week off then work then be off again, when there isn’t even any work to do. In that job the other staff were like “can’t we just be furloughed and get 80% for being at home instead of this halfway nonesense” and they were told no as the decision had been made already.
Monzo’s version seems fantastic in comparison, especially as employees have some choice in the matter.
As for Tom having wealth on paper so having some duty to not use government benefit schemes , well that’s just nonesense imho. Firstly you can’t just single out one person out of many and secondly this government scheme is to compensate businesses and individuals who have lost out, to kick start the economy out of cardiac arrest and to ensure that no one is sacked where their job just needs to be held for them for a few months.
Monzo have been massively affected by this crisis - signups down two thirds, revenues off a cliff, funding round in jeopardy, short term outlook very bad. So why should they feel any guilt about using the government’s scheme designed to help companies such as them?
I’m not sure if the exact timeline but it may be that the announcement of Starling etc (10th Apr?) was after that article was published (9th) No reason why it couldn’t be updated though!
lol just about a small crowdfunding round size then if they go for the biggest on offer (£5m) , should take care of the advertising budget for the year
You could actually argue this is very bad news for Monzo’s existing shareholders if it takes part in his scheme - given the terms that the government will impose on its investments - plus a worrying sign about Monzo’s working capital/cash burn levels.
Monzo’s working capital has become low enough that they need to raise more investment.
having to go for a govt scheme means it’s existing investors are not willing to back it with more money at the moment.
it appears firms will need to pay a minimum of 8% on the money borrowed (quite high and difficult to see how Monzo will make money on this) and that the govt will then get shares at 20% discount next time it issues shares
this is the start of the twitter … Monzo as far as i know are out of the A and B startup funding rounds
flippen heck there’s nowt better than a bit of a conspiracy thread to suggest things based on the Monzo icon being on the front of " Future Fund" that Monzo are applying for the fund for start ups because … a / b / c , put your theory here
Tom is actually giving advice and advertising the Future Fund on twitter to small startups through some of his followers that have small startups , because he and the founders have some experience with small startups so have a lot of followers wishing to emulate their success from small start ups … lol but the Monzo icon on the front of the Future Fund release picture from the Chancellor must mean… Monzo are applying …OK
, should take care of the advertising budget for the year