I think Crowdcube is building an API integration with Seccl to transfer private shares into public ones during/after IPO
This was with reference to splitting that into individual investors before the IPO, discussed above. If not, trivial obviously.
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“more than £3.5bn”
Good news in this fundraising market
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Wasn’t Monzo valued at $4.5 billion two years ago? At a share price of £14.4125?
Plugging those numbers into my complex AI powered currency converting tool: $4.5 billion = £3.7 billion.
So no movement in valuation in two years?
No change in share price?
‘more than’ would indicate there is indeed a change in share price. Just no real indication of how much.
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Let’s hope the change in share price doesn’t follow the recent Freetrade share price horror.
Freetrade: “Hey everyone, we’re making more money now than ever before, we’re a bigger more successful company and in fact we are now in profit, hurray!”
Also Freetrade: “By the way, your shares are now worth 25% of the value they were a year ago”
Me: “WTF!”
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They must be doing a lot of things correctly to survive the current market conditions!
The article specifically states:
Insiders said the fundraising would be conducted at a premium to the £3.5bn at which it secured capital from Abu Dhabi Growth Fund in late 2021.
So I expect it to be more than the £3.5bn, but how much “premium” is, is anyones guess.
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The share price was £13.01 at a £2bn valuation until the pandemic hit in early 2020 and the rumoured (by Tom) huge investor pulled out just before signing their term sheet which may have put Monzo’s valuation in Revolut’s orbit, leaving existing investors to somewhat unwillingly fill the funding gap and set the 40% discounted price of £7.71 or £1.25bn valuation.
This low valuation only held for around 7 months as in late 2021 the valuation almost tripled to £3.5bn or £14.41 per share with Monzo weathering the storms and the fintech and VC hype back in full swing. The fact that the valuation went from £2bn pre pandemic up to £3.5bn in late 2021 and yet the share price remained in a similar place is down to all the dilution that came from the big raise at the heavily discounted valuation and making good on Y Combinator’s terms (iirc they got loads more shares as a result of the down round).
This will be another 10% dilution to the share base, however they will gain £300m in cash. The share price will probably remain in the same ball park of £13-15 if my understanding of small dilutions is correct.
These Mark Kleinman stories are normally very close to the bull’s eye (he clearly has a source very close to the coal face) so I would not expect a valuation much higher than the £3.5bn suggested.
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This is completely wrong
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from memory all the big investors got the option of more shares as a result of the down round …section 9 of the articles of association - Anti Dilution
Mea culpa! Thanks for the detail.
Looks like I have a very old price on my spreadsheet then! 
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Oh my, is that right? I have shares in FT too 
- I sold half when we had the chance a couple of years ago though.
This is a very unfortunate and has happened to quite a few companies.
Startup valuations have been divorced from business performance for a long time. Instead, it’s the state of the venture capital markets that
mainly governs the valuation.
Monzo shouldn’t go down because it doesn’t need to raise in the same way at this point, it’s profitable and steady as we understand. So if they couldn’t raise at a decent price they just wouldn’t be raising. Doesn’t mean they are immune though - if they were in this business position in 2016 they’d probably be raising at a valuation of at least double I would think.
I reckon this raise is about getting investment that means they’ll be able to show more growth so they can hit IPO at a steeper upwards trajectory. Which will be vital to a successful IPO - they can’t hit that as a small U.K. retail bank because that wouldn’t be worth £3.5bn, they need to hit it as ‘emerging worldwide fintech giant’.
I’m hopeful for at least £10 / share at IPO, possibly higher, if it’s next year.
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They could be taking the investment to boost their capital, meaning they can originate more loans etc? From their last annual report, they’re now profitable on a monthly basis, therefore there’s a good chance this cash injection is for a specific reason rather than just money to keep the lights on
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That’s what people have been discussing for the last 4 days.
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Is anyone familiar with the workings of Companies House filings?
I receive online notifications of any forms or documents submitted in respect of Monzo, and there has been a lot of activity of late. Most of it seems to have been retrospective tidying up, but 2 yesterday had interesting descriptions
- Notification of Monzo Bank Holding Group Ltd as a person with significant control on 12th September 2023.
- Withdrawal of a person with significant control on 30th October 2023.
Owt or nowt?