Monzo's Crowdfunding Rounds

[evangelskies (Eve)]

@Samuel10

Institutional investors will not back a company with a zero track record who are seeking large sums of cash and crowdfunding was the best and probably only way to to raise the sums needed at the time.

I would argue that crowdfunding isn’t as profitable for Monzo as you think it is- referencing Tom’s post, each crowdfunding investor actually costs Monzo money in administrative fees.

Taking £10 from 100,000 people would raise £1m but would cost us £2m

Taking a small amount from each customer would mean Monzo would lose more money than they gained. He says that he would love if the bank was entirely crowdfunded, but it’s not possible.

I’ve linked the post below.

Next opportunity to crowdfund?

We would love to include more people in our crowdfunding - I speak to people every week who are disappointed that they missed out in previous rounds. It’s really frustrating for us that we can’t let everyone put money in who would like to. There are 2 issues; There’s a €5m EU cap on crowdfunding (which gets reset every 12 months). Administration fees cost around £4 per crowd investor per year. We’ll probably need to pay these for at least 5 years until we eventually IPO. So call it £20 pe…