Next opportunity to crowdfund?


(Will Juffkins) #1

Hi,

As you can probably tell I didn’t get chosen from the big hat to invest this time round unfortunately :frowning:. Just wondering when the next opportunity will come around?


(Alex Sherwood) #2

Monzo haven’t decided yet -


(Will Juffkins) #3

nooooo
thanks for the reply anyway


(Annie) #4

Any updates on this? I’d love to invest


( related to Monzo CEO, Investor in Monzo ) #5

looking like early next year for another funding round , though possibly earlier depending on number of card users going forward - page two at the bottom of financial pitch on crowd cube -

be interesting to see the valuation/ dilution next time - must be getting on to 275,000 + users by now and maybe £350 million spendo


(Alex Sherwood) #6

According to the annual report that’s still the plan :slight_smile:

From a financial perspective, we’ve got enough capital for at least the first 12 months of life as a bank. To create a viable, sustainable business, it’s important that we reach profitability over time. However, profitability is not a key priority for this year, and we would prefer to focus on growth over driving revenue. As a consequence, and as explained in our crowdfunding pitch earlier this year, we’ll need to raise more funding in early 2018.

Although there is a caveat -

If we grow even faster than expected, we may need to accelerate funding plans.

But most importantly -

We are also exploring ways to include a crowd component in the next investment round to include as many of our community as possible.

:tada:


#7

Is anyone working on ideas/plans for the next funding round at the moment or is it on the back burner?

This might seem premature talking about it now seeing as you’re expecting it to land in 2018, but with the last round as soon as you announced your plans they were pretty much in stone and unlike with your app development there wasn’t really any request for community feedback (there was one last minute thread by @tom asking for perk ideas but the ideas sucked so they didn’t use any).

It resulted in you making similar mistakes to the first round. (:key: Major key alert: most people could not invest in either round and found their monzo love unrequited, fuelling support for Revolut, tandem, starling).

It would be amazing if you had someone solely working on relating with investors (different from Investor Relations :kissing_smiling_eyes: - proactive vs reactive service), offering random perks and updates, arranging events and thinking about how to enlist the next bunch of people who are in love with monzo and want to be able to own a piece.

I heard tom’s podcast with Luke Lang of Crowdcube where he said they have a lot to improve with regards to investor perks etc, which is fantastic that he acknowledges this weakness but is anything in motion to make this happen?

Monzo seems to have the (perhaps misinterpreted) mindset that people would be lucky to invest in their company (evident from last 2 rounds) if they could instead look at it as the ultimate marketing opportunity and enlist all of the eager minions to do their bidding then it would make reaching a billion people a whole lot easier.

It would be cool for example if they launched a campaign to get 100,000 investors. Everyone will get a £10 investment and be rewarded with an investor card and access to a feature that no one else can have, e.g. Break away from the marketplace model for us and offer us the monzo ISA, but only for these 100k people.

For those who say £10 is not enough equity, the rest of the crowdfunding allocation after this £1m could be done on a sweepstake to those who want more, then no one will be let down and monzo can harness the full power of the crowd.

If 100,000 people became investors can you imagine the implications of that for marketing and growth?


(tom) #8

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;

  1. There’s a €5m EU cap on crowdfunding (which gets reset every 12 months).

  2. 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 per investor in admin charges.

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

I would love it if Monzo was a bank that was entirely funded by its userbase. We’re exploring ways of making this possible, but it’s sadly not straightforward.


Selling shares in Monzo from crowdfunding round?
Crowdfunding (Upcoming 2018/19 Round) - Updates
Community Digest 14/07/17
An Explainer of Pre-emption Rights for Crowdfunding
Monzo vs Starling - heart versus head
(Bob) #9

That ^^^ is quite staggering! It really puts to bed any idea of greater numbers having an opportunity to invest in future rounds :disappointed:


#10

This does put it into perspective :blush:

As an investor I would personally support that kind of investment. I mean, if the goal is to fuel exponential growth by investing money in loss leaders then why does that have to just mean free forex and banking services? All fundamentals seem to be out the window with fintech and it is only growth that matters in determining your worth. NB: Revolut £300m even though they suck.

Thanks for reading/replying on a sunny Saturday afternoon, that’s why Monzo is the best! :heart_eyes:


#11

I agree, there is room for improvement, since we all hate to not satisfy our early believers. 100k x 10 is prob not the right number, but how many people did pledge w/o getting any?


#12

Wow, This one reeled in some pretty huge fish! :star_struck: Hope the team can have a good think about this topic over the coming months before next round. Would be amazing if as many people as practically possible could join the :monzo: journey.

Crowdfunding in Numbers https://community.monzo.com/t/competitor-update-2/12331/21


(tom) #13

I think something like 43k people entered the ballot, and about 6k were selected. Our userbase has more than doubled since, so you’d expect a corresponding increase in people wanting to invest. Maybe 70 or 80k.

Realistically, the only way to enable this is to;
a) issue a prospectus so that we can raise unlimited crowdfunding (and avoid the €5m euro cap)
b) build a new platform in-house to manage the communications/voting rights of 100k shareholders, avoiding the £4/user/year admin fee.

This is possible, but it’s not straightforward.

Meanwhile, we’re working flat-out to get the bank account launched. Prioritisation is hard.


Monzo £71 Million Investment (November 2017)
(Jason Yau) #15

Sucks because I got a place in the first crowdfund but wasn’t old enough to complete it as it was days before my 18th.


(3 Round Investor) #16

Speak to seedrs - i’m sure they’d do you a deal - it might be the reason Revolut have moved to them!


(Phill) #17

Do what they tell me to do at my work:
Prioritise everything at the same time
All of your problems solved in one easy solution <3
Ur welcum


(Jonathan) #18

Will there be another round of investing in the future? Would love to invest in Monzo :slight_smile:


(Mike) #19

So frustrating that the crowdfunding is closed! … Dissapointing I have to leave money sat in RBS when it could be in Monzo :joy:


(Leon) #20

For me the way Monzo done the second crownfunding campaign left me cold.

For me it was unfair. The people that backed the first round could then for all intents and purposes apply to back again, to which surprise surprise most did. Crowding out the people who wanted to back for the first time.

Yes I know it was a lottery and yes everybody had a equal chance but a outright ban and lottery would of been ideal.

What would of been fair is a ban on the people that backed the first time giving new people the opportunity to back Monzo.

Either way Monzo did not do that and so what do you think will happen this time? Raise and repeat!


(Alex Sherwood) #21

The investors in the first round had pre-emption rights & presumably the investors in this last round do too.

Monzo made that commitment so excluding the first round investors from this last round wasn’t an option -