📰 Monzo, a UK digital-only bank, is closing in on new funding - TechCrunch


(Danny) #1

(Colin Robinson) #2

Interesting that they’re showing the full card number in the photo!


(Alex Sherwood) #3

Ha! Fortunately it’s a stock photo, you can check that the card number’s not real using the Luhn algorithm which is built into tools like this one.


#4

Another damn algorithm … https://en.m.wikipedia.org/wiki/Damm_algorithm
:slight_smile:


#5

I hear the full announcement is coming next Tuesday/Wednesday with a balloting system being used for the next round of crowdfunding. Looking forward to hearing about that next week.


(Alex Sherwood) #6

That sounds good, that would coincide with Tristan’s announcement at the open office.

How did you hear about the balloting system?


#7

I heard it from Monzo, yesterday. I was attending a video interview for a community video. I didn’t probe for details, but the intention was to make it more fair this time.


(Alex Sherwood) #8

Paul (Monzo’s Deputy CEO) just retweeted this story so I guess some of it must be true! :+1:


#9

so it will be like buying a lottery ticket…a waste of time…and other people will get to buy the shares :sob:


#10

There’s always going to be downsides to whichever way they chose. But as a previous investor, you get pre-emption rights so you will be able to invest if you want to :slight_smile:


#11

I was thinking of other people. It is much fairer first come first served where we all know where we stand than having some sort of raffle where people get pissed off that they didn’t get an allocation but someone after them did


#12

I don’t think it’s safe to assume pre-emption rights: A notice to our Crowdcube investors 🤗


#13

yes, with the current major shareholders it probably will be disapplied :angry:


#14

I do think they’ll offer pre-emption rights. We can of course only wait until next week to know.
But to dilute existing share holders without chance to buy it would be a very bad precedent to set and an uncommon one in issuing of shares. In fact it would destroy a lot of goodwill if that were the case.

I should imagine that because this round is 2.5million, existing investors will have the opportunity to invest a similar amount that they invested first round, be it £10 or £1000.

Edit: I missed the news this morning: https://monzo.com/blog/2017/02/23/fundraising-announcement/

Existing investors from last year’s crowdfunding round will automatically be eligible to invest again this time, if they wish. We’ll post full details of exactly how the crowdfunding investment will work on the 28th, as well as details of the perks we’re going to offer


#15

It’s not really fair, either. It optimises for people who have fast computers, low latency connections and an ability to fill out forms rapidly. Mainly younger people who work in tech. I don’t think it’s a bad strategy however, as those types of people are often the ones that disseminate technology faster to their friends who are less tech focused. But fair - not really.


(system) #16

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