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 wouldn’t want to be ‘bothered’ 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 don’t see why Monzo can’t manage it for their first / second round investors.
Saying Monzo won’t 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 ‘allow’ share transfers after purchase in the articles of association in the crowdfund rounds
You’ve already started a topic about this before
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 £33 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 £100 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 you’re not entitled to exit and this doesn’t mean Monzo doesn’t 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 £100 million raise
My question to you would be why do you think Brewdog and Revolut (both billion £ 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. You’re even using the same Brewdog example in both too.
If it’s to discuss the article, then you’re too late with that as well. That discussion is already being had below…
I don’t really care. It’s up to the business whether they want to waste the resource doing so.
I don’t think it matters - unless your saying I was not the first to post it
Plus That post is under “Monzo in media“ 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 it’s all in one place.
However we’ve deviated from discussing the article and you’re now pushing the same agenda from your last topic you made
This is all getting a bit meta - let’s stick to the topic (Monzo raising more money) please!
I wonder if they’ll crowdfund again alongside an institutional raise?
I would also be keen to see at what valuation Monzo raise at. I can’t 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 Monzo’s valuation was primarily based on customer numbers and the promise of future per customer earnings? If that’s the case, I’d expect it to go up broadly in line with customer numbers…
You can’t value a bank on the number of customers eg 4 million customers = 4 billion valuation as you don’t know how many of those customers are actually worth having.
People who have accounts but don’t 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 won’t complain