Monzo Valuation

Sorry if I wasn’t clear. The 250K figure was about growth. A company growing at 250K per month is worth more thane one growing at 180K per month previously hence my comment about it moving the dial. I’m interested to see whether the growth immediately drops off now that the TV adverts have finished.

1 Like

Whilst the “GBP 96,337,358.442147” confuses me I don’t believe these are a new investment. About 7000 shares were issued at £1 each (i.e. the early 2017 fundraise price) - I think these are staff executing options.

5 Likes

Perhaps @tom or someone else involved in such matters can enlighten us here?

Indeed, seems like staff options. Might be issued to sell them in the yet-to-be-announced funding round?

Yes agreed, I was just saying in the same entry you have the £96 million statement of capital, alongside a separate issue/allotment of 7000 shares.

I think the £96 million = YC funding (possibly)

7000 shares is more than likely something completely different (like staff options), hence why I said I couldn’t work out specifically the number of shares bought by YC. The £96 million figure isn’t anywhere else but in that initial text box in the overview (not featured anywhere in the SH01 Form). Just seemed weird to have a very close to £100 million number near around the time we were aware of the funding.

3 Likes
2 Likes
1 Like

It won’t be long before the Monzo accounts are out and all the press will be aghast at the losses , not turning a profit and how can this upstart ever survive against the highly profitable big four :slight_smile: It is all about customer acquisition , always has been, then turning a profit with that huge customer base.

5 Likes

Tom’s comment about being okay with no profits for 10+ years could be a bit of a ‘head above the parapet’ moment.

The best way to put their foot down regarding critics’ opinions on losses is to openly state “we are going to spend over £100m building a better bank for tens of millions of people” rather than saying “our goal is to be profitable and we are very close, however our losses are growing exponentially”.

Now that they’ve got all this money and a close-knit bunch of investors fully on board hopefully they can tell it like it is.

2 Likes

Just look at Tesla, made losses for years and years and years due to the investment into R&D - “how will Tesla compete against the likes of X, Y and Z”.

Monzo have shown they’ve got something it’s just whether that traction can continue and then they can flip the profitability switch (IMO).

Losses don’t automatically equate to a company doing poorly, if the only idea is to spend that money building something.

2 Likes

What does everyone think monzo is currently valued at.

We’re all waiting for their Investors Loop email.
Seems like we’re waiting for Godot :slight_smile:

In reality it’s still valued at its last round, i.e. £2 / $2.5bn,

But if you were to speculate what it could be worth if it were to raise soon, which seems unlikely…

I’ve been thinking that Monzo got a $2bn valuation at 2m users, it’s now 77% higher than then, so it could be 77% higher, but the reality is it will be worth whatever future investors want to pay…

Reminder: WeWork and Softbank dreamt up its valuation in a meeting between two people.

I’ve posted elsewhere that there’s a simple correlation between user numbers and valuation. I appreciate that brand value and future growth are large considerations but the evidence suggests a simple correlation, current value is £3.55 bn. I would be raising at £4bn valuation with a view to end the raise in around 3 months. I happen to think the sky is the limit - hold…

1 Like

Yeah I agree, I’ll wont be selling for many years

To be fair, all Crowdcube investors will likely be made to sell in the event of an IPO.

You may not have a choice on your holding period.

Any evidence of this?

Most CC companies that have IPO that I have seen haven’t had this rule.

1 Like

Voting on shares held by Crowdcube’s nominee is done on a block. When there is a sale or exit, I suspect it will be put to a vote and most people will elect to sell.

Each individual shareholder will have to go along with the majority. I’d be amazed if we weren’t all forced to sell in the event of an IPO.

An IPO isn’t a sale or an exit though, it’s just the ability to sell. So there wouldn’t be a vote to sell.

The main reason a nominee structure is used is to save on the paperwork and legalities of managing thousands of shareholders when a company is small.

When an inevitable IPO does come, Crowdcube Nominees will dispense of the responsibility and title of the shares to a broker. Which I imagine every Crowdcube investor will have to get an account with to manage their own stock.

I cannot ever foresee a situation where an IPO leads to a forced sale specifically for Crowdcube investors.

5 Likes