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.

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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.

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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.

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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.

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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.

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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.

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