If this article is correct it would be nice if early investors were given the chance to sell some of their shares to the new investors like Brewdog did when TSG invested 213 million in them - say 50%
As nice as it may seem, in my opinion it is unlikely to happen , IF there is a new raise as reported it will be for a substantial amount from a couple (?) of investors willing to stump up multiple millions each. Im fairly sure Monzo wouldnât want to be âbotheredâ with sorting out shareholders with 100 shares selling 50 or even up to 3000 selling 1500 , or whatever the maximum crowdfunded holding is, the administration would be an unnecessary diversion for them at this stage . Unfortunately / or fortunately - however you look at Monzo prospects, I think crowdfunders are fairly locked in until IPO - as originally warned about the liquidity of the shares when purchasing them in the crowdfunding rounds.
The raise is meant to get more cash to finance growth (US?), not as exit option for early shareholders. If you are given the opportunity to part with your shares, Monzo would not get a penny. You can always do a secondary transaction. BrewDog shares are often traded too.
Yes aware of that the same applied to Brewdog and Revolut but they still did it for early investors.
Hi Ian - if Revolut and Brewdog managed it for their early investors I donât see why Monzo canât manage it for their first / second round investors.
Saying Monzo wonât be bothered about doing it for their investors sounds a bit like they care less about their investors than other crowdfunded businesses
Hi Andrew - its just my opinion nothing to do with Monzos view - however it was made fairly clear about the circumstances that Monzo would âallowâ share transfers after purchase in the articles of association in the crowdfund rounds
Youâve already started a topic about this before
Should Monzo allow a one off share sale like Revolut and Brewdog
Appreciate that I just think when companies reach multiple billion pound valuations they should give back a little to their early (2016) retail crowdfund investors as little thank you for supporting them when their valuation was just ÂŁ33 million and they did not even have a banking license.
Some 1st round backers are now sitting on substantial life enhancing amounts which would help them immensely.
And like I said If others can do it I am sure Monzo can do it as its not exactly going to eat very much in to a ÂŁ100 million raise.
Im sure you will appreciate the multiple billion pound valuation is for their potential, not their value - they are still a loss making business , I appreciate what you are saying , in my opinion its not going to happen
Whilst this is true, unfortunately youâre not entitled to exit and this doesnât mean Monzo doesnât care about you either.
The terms were set when you parted with your cash.
That post was about a trading day - this post is about allowing early investors to exit in the Rumored new ÂŁ100 million raise
My question to you would be why do you think Brewdog and Revolut (both billion ÂŁ companies now) made the effort to allow early backers to exit when the rules/terms were the same for them
Pretty similar - you want Monzo to allow you to sell your shares. As a result the same arguments are being had. Youâre even using the same Brewdog example in both too.
If itâs to discuss the article, then youâre too late with that as well. That discussion is already being had belowâŠ
I donât really care. Itâs up to the business whether they want to waste the resource doing so.
I donât think it matters - unless your saying I was not the first to post it
Plus That post is under âMonzo in mediaâ this area is for crowdfunding discussions so I think my topic subject is actually more relevant here.
That is my point. When discussing a subject (such as the article) it keeps everything tidy when itâs all in one place.
However weâve deviated from discussing the article and youâre now pushing the same agenda from your last topic you made
This is all getting a bit meta - letâs stick to the topic (Monzo raising more money) please!
I wonder if theyâll crowdfund again alongside an institutional raise?
Fair enough
I would also be keen to see at what valuation Monzo raise at. I canât see them going up much unless earnings have increased massively and losses decreased since the last raise. Saying that Revoluts new funding round is rumored to be at 7.5 billion valuation and they are still loss making but have nearly 3 times the customers and worldwide reach.
I thought that Monzoâs valuation was primarily based on customer numbers and the promise of future per customer earnings? If thatâs the case, Iâd expect it to go up broadly in line with customer numbersâŠ
You canât value a bank on the number of customers eg 4 million customers = 4 billion valuation as you donât know how many of those customers are actually worth having.
People who have accounts but donât pay in their salaries or take out loans / overdrafts are actually costing Monzo money not making them money
Saying that if they get the funding away at 3.5 billion I wonât complain