So nownit looks like a PE might invest. I’m thinking that this will likely be dilution with issuance of new preferential shares, rather than an opportunity for Crowdcubers to exit. I expect employees to be ahead of the queue to liquidate if the opportunity arises. I’m about ready to cash in on my investment, Monzo have sat on it for a long time and are now profitable.
Hopefully I’m wrong - the funding deal TPG did with Tide enabled early investors to exit:
I don’t think anyone ever cared about Crowdfunders in the history of Crowdfunding, besides Brewdogs maybe. Their CEO was giving old shareholders shares in his new company after the old one failed.
I’m starting to get Freetrade trauma flashbacks - I can’t shake this feeling Monzo are going to shaft it’s crowdfunders.
There is potential life changing amounts of money on the table for some crowdfunders and it all relies on the integrity of the board - UK government pushing Jo public to invest in British and yet offering zero protection against predatory private equity behaviour.
Well, I didn’t take his offer. He sat and watch the share structure change at every new funding round until crowdfunders like me lost all our right to anything. Yes, he offered us free shares in his new adventure. It might be another success story. But you can only fool me once. You’ll not get a second chance. Even his new venture turns out to be a great opportunity that I’ve missed.
Totally agree with you. I’m sitting on proper 6 figures return. But like you said, it only take them to say “sod them crowfunders” for this money to be worth significantly less or nothing at all.
How could a situation arise that they “are worth nothing at all”. We have Class A Ordinary Shares, same as the big investors. I think we’re safe enough
Always a possibility that as part of a new raise there is an opportunity for existing crowdfunding shareholders to sell their stakes for an agreed price.
I think I had that option with Grind a few months back.
The worst thing is that we have had zero communication from Monzo in recent times. Not a sausage. Do we have any kind of representation to at least remind the board we exist?
Crowdfunders are only forced to sell their shares if drag along rights are triggered. Drag along rights can only be triggered when the whole company (or a majority % as defined in its articles) are acquired, so a private equity firm looking to acquire 10% of monzo is not going to force crowdfunders to liquidate.
People are confusing this with other crowdfunding outcomes like Freetrade or Brewdog where drag along rights were triggered and you got whatever little amount you were given.
It sounds like these private equity deals on the table would be, for example, £1bn cash injection to pile into Europe in exchange for a new 10% stake in the company, or a bit lower cash or higher percentage if the valuation is lower.
TPG did this on a smaller scale with Tide in September 2025 and added a liquidity offer to allow early backers to exit at the same valuation.
With these liquidity events they often say something along the lines of “we will be buying £1bn of new shares and will also buy old shares from anyone who wants to exit, however the price of the old shares we will buy will be lower than the new ones we’re buying and will be limited to £100m”, or whatever number, so if a billion pounds worth of shares opts in to be sold then you may only get to sell 10% of what you wanted to sell.
I feel like £1bn for 10% would be pretty good going, shame it’s not higher but would give them some decent fire power (+ increasing profits coming from the UK each year). Would represent a doubling on the last funding too.
