I’d just rather not have to sell at IPO, I think longer term Monzo has few limits to its potential growth. Google won’t be investing in a quick 2, 3x return. They’ll be hedging long term with an investment in a £50bn+ fintech bank.
I hold 3154 shares, so would love a forum to chat just about exits/tax etc if somebody is making one
I don’t think that’s a thing. I’ve never heard of that and it doesn’t make sense to me. IPOs are for companies to raise capital by selling additional new shares and/or to improve liquidity for existing shareholders, not to get rid of some shareholders and get different shareholders instead.
If they sold my shares then that money would go towards my lawyers. That’s completely unacceptable without the full permission of shareholders.
I would guess that after an IPO crowdcube would need to write to shareholders to let them know that Monzo’s shares are now publicly traded but still held by crowdcube nominees who do not provide stockbroking services and therefore they cannot be sold in the current state.
They could provide a form to ask which stockbroker you would like to transfer your shares to, or might put some sort of offer to you to sell the shares at some discount to an investor on their books, like they have done many times with other companies under their umbrella.
It should be as simple as filling out a form to say you are with this stockbroker, and this account number and you consent to the transfer.
Crowdcube would hopefully not sneak in any “transfer fees” but you do wonder what part of the carcus they will attempt to feast on when they have technically already had their meal with Monzo.
I’m sure they’d like a 3x return . But the risk on Monzo now probably isn’t high enough for it to have to raise at one third of what it could get in an IPO. What VCs expect and what VCs get are very different things. VCs make about 15% on average these days, there are gains and losses even for late stage investors. Just because VCs invested expecting X, doesn’t mean that’s what will happen.
At this stage it’s very complicated. Investors now won’t be looking to sell up at IPO, they’ll have a much longer investment horizon and if anything will be looking to buy more shares in the future or provide funding.
Being able to transfer the shares at will would be ideal.
I don’t think a Crowdcube funded company has gone through an IPO at this point? Happy to be proved wrong.
My thinking is that Crowdcube will have an option to sell at Day 1. This is pretty common during the US listing process at least - early institutional shareholders often have an opportunity to sell at the initial IPO price.
If that happens, Crowdcube may put it to a vote. If the majority vote in favour (which I suspect would be the case), then everyone would likely be dragged along. Through the nominee structure, Crowdcube investors only have one vote/one voice/one block of holding so the majority will always dictate.
It’s not what I hope happens! At this stage it’s all speculation so not super useful anyway!
Global brands like Nestle, Europcar, Diageo and EDF have acquired businesses that raised with Crowdcube, while others have listed on the stock market or completed a secondary share sale.
The majority of exits have been acquisitions. bidstack had an IPO exit and is now listed on AIM. They might be the only IPO so far.
I think this is a really bad idea. It could constitute financial advice, which is a heavily regulated area. Monzo would be in big trouble if they allowed potentially unlicensed financial advice to be posted. That’s why Freetrade’s community lets people discuss shares and companies but bans any actual advice being given.
Crowdcube investor terms already tell you what will happen. They’ll put it in a GIA for you, which will cost you £10 a year to maintain but allow you to manage the shares there. If you don’t give them the info to open the GIA for you they have the right to either transfer the share ownership directly to you or sell on your behalf and send you the money.
I know what you mean but the dedicated topic can have a disclaimer.
I think there will be many investors who will be looking for tax advice or if people know any tax advisors who have innovative solutions (not net off against losses or sell shares in small chunks every year) then maybe a place where they can share details of the advisors they use since not all tax advisors specialise in this field.
I did the same thing as Aces - transferred (crowdfunding) shares to my wife. You need to submit a request through Crowdcube that then needs to be accepted/approved by Monzo. I forget the exact process now.
Your spouse will pay CGT on a sale as if they bought the shares originally at the same price you did. Obviously you get the benefit of their annual CGT allowance.