This is fantastic news - congrats to the team at Monzo!
Just check https://options.monzo.com
Oh right, I see that now!
Definitely doesn’t make sense to me, based on the number of shares that were outstanding in August, but I’m sure it’ll all become clear once the paperwork is filed.
The numbers on their options page add up to around £900m post-money, but they have announced it is £1.085bn. Something wrong there @tristan ? The options page suggests 140m shares in issue after the raise, which can’t be right as that’s an extra 33m shares or £200-250m raised instead of the £105m stated…
It looks like maybe the person calculating has factored in 20million shares for crowdfunding rather than 20million pounds?
Congrats on the news btw!
Paper gains at present
The way this is going we will be hitting capital gains tax carry back thresholds and have to give some of this gain to hmrc
How do capital gains work? If the exit was structured in such a way, could you hypothetically sell your shares over a number of years to remain below the threshold?
It’s on the gain at time of sale, so yep, sell a bit each tax year if you’re going to go over your allowance
Hopefully we get an IPO and so get this option, if it’s a sale to Google/Amazon/etc. then maybe not
Everything Tom has said leads me to thinking IPO is his plan however.
He’s mentioned IPO at the very end of this (and next round of crowdfunding wil be through the app)
Tom was on Sky News’ Ian King Live earlier on this evening, unfortunately I literally only caught the ‘thank you’ at the end I’m sure it’ll be on YouTube/On Demand later.
I think that this is great news, however I am curious as to the long term business plan to make the company profitable (considering current accounts generally cost more to run than they generate in revenue). Is this in the investment documentation or dealt with elsewhere?
We haven’t seen the investment documentation (because it’s not public sadly) although we can expect to see something as part of a new crowd funding round.
You might be interested in watching the video of last night’s open office, though, which dealt with just this subject.
Thanks, I’ll give that a watch!
“weaned off debit card topups” - I like that!
The valuation sounds like part of a bubble to me, same as Revolut.
Congrats to the Monzo team! Any huge thanks for your project!
If overvalued, it will take an age for the cash value to catch up, so you may be holding on for an IPO for a while.
Much will depend on whether Monzo can break through into being a platform company, rather than a product (current account) company, so it’s all heavily predicated on the marketplace working out.
I was just about to say, probably a good point for someone from monzo to jump in and remind everyone it’s not a guaranteed … one can lose money investing. Though the force seems very strong with this one
We’re super aware that we’re not there yet - and continue to work super hard
We want to be that puck - in the famous words of Tom Blom himself.
I’m not from Monzo, but here’s one I prepared earlier:
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