you can hardly expect Mondo to come out and say one way or the other can you ? -
The positive case for Mondo continues as far as I can see, the app is met with virtually widespread approval by all users , even in Beta phase.
Customer support from what I see on the community forum and twitter feed is usually outstanding
The up take of users is only going to get better as new features are rolled out. ( and bugs fixed ! )
The banking license should be forthcoming shortly ( Maybe even more so with Brexit and the UK Govt. trying to encourage more business startups ) which will in turn encourage more users about the financial security / compliance of the business.
To come from virtually nothing at the start of the year ( when I joined the Alpha test) to where Mondo is now is nothing short of a miracle, and great Credit to all involved in the hard work and shear bloody mindedness at Mondo to create something that is clearly outstanding and unique in the market place and that is met with almost universal approval by testers / users - once they get over the horrendously popular waiting list and get their hands on that lovely Hot Coral card
I think in one of the business plans I saw on Mondo they were aiming for 1.6m customer base by year 5 (or was that Starling Bank hmmm ? - it would be a similar business plan though ) - just to put that in to context - in the UK Santander acquired 3m customers for their 123 account in 3 years
As far as I can see there are still several opportunities / options for Mondo regarding the UK leaving the EU.
Registering M… in another EU Country should the UK lose its passporting abilities to gain access to the remaining 450m potential customers - having converted the UKs 65 million customers into Mondonauts - Germany would be my guess if eventually required - however the loss isn’t a foregone conclusion yet. The EU registration / compliance would obviously have some additional costs for Mondo - just as Easyjet are now considering with their HQ to get around any perceived negative consequences of Leaving the EU .
Continue with and or speed up USA ambitions also Canada, Australia, New Zealand, Singapore, India, Japan etc etc etc options
just my opinions - but there again Im a glass half full sort of person
I’m planning to write a longer piece the result of our referendum, perhaps for the blog.
While the referendum result is certainly negative for Mondo, we still believe we’ll be able to raise at least £15-20m needed for launch. I’ve had several conversations with investors over the last few days, and there’s still good appetite to invest.
I think it might well have made it easier. With Brexit potentially making it untenable for international banks to stay in the UK then support for home grown financial institutions will surely be stronger.
That’s my uneducated view on the situation.
I can only think of Barclays and Standard Chartered as large international banks founded in the UK but I’m sure there are others.
I am a share holder in Mondo and what I am about to say may not sit comfortably with you or some of the others on this board but with us now due to leave the EU and the possibility that credit markets might start to tighten (if they have not already) I really think a Mondo and Lloyds partnership or any partnership with another bank would be a good thing.
A take over would immediately remove the headache of having to raise another £15 million within the next 6 months!!! and we would instantly be able to start trading as a bank.
If £15 million is not raised Mondo is just a brilliant app with a load of prepaid cards - NOT a bank
And don’t forget £15 million is just the start after that Mondo has to raise further money the following year of around just under £20 million.
Enthusiasm for using mondo will soon dissappear if users do not have a date when they can start using it as a bank account - me included and I invested via the crowdcube fund raising.
Lloyds are obviously keen to do deals as explained in the link below so maybe worth considering ?
A deal with Lloyds would completely destroy the ethos of Mondo just for a short term gain. I’d rather it stayed as it is for longer than planned than just become part of a larger entity and become a shadow of what it could be. It has a real chance to do something positive as it is now and I’d hate for that to change.
What sort of an update are you expecting from Tom? 4 days ago he wrote:
Hopefully he has some time to write that longer piece but with a couple of sentences he’s explained how he sees the future. I think you’re overly worrying. It’s only two weeks since the referendum, there’s no guarantee that Article 50 will be enacted anyway. I’m still hopeful that it isn’t.
As it is, I’d rather Tom spent time talking to those investors and getting a clearer picture of the mood for investment. A total of £35m really isn’t that much in the grand scheme for investors. Especially as, to my understanding, each further series of funding increases amount invested at a higher company value.
Billions is invested, just in the UK, every year. I think Mondo will be fine, even if restricted to the UK market because of Brexit actually happening.
“Billions is invested, just in the UK, every year. I think Mondo will be fine, even if restricted to the UK market because of Brexit actually happening.”
$2,280,000,000 last year alone in London Fin tech
if Leaving the EU does happen, as opposed to EEA membership, there is still a whole world out there.
dilution on every funding round does increase the size of the pie , but also reduces your slice size of the bigger pie , being in a strong position - as I believe Mondo is - obviously makes your bargaining position stronger on how much you need to dilute on each round
All fair points guys, I have everything crossed that in a few months time the markets will be the same as pre Brexit
U.K. Is already rumored to be talking to India and China which heaps pressure on EU to start informal talks.
I am hoping that once an outline of what Brexit actually means is put in front of MPs they will vote against triggering article 50 therefore triggering a second referendum but if leadsome becomes PM all bets are off.
One other point both ladies have said BREXIT means BREXIT
and in talks with USA despite being at the back of the Q - and Australia , and New Zealand all despite the rhetoric - thats almost 3 billion of the worlds population that we couldn’t do a deal with pre ref
Greece has defaulted on a repayment to the IMF , Italy is about to try and break EU rules on bailing out their banks , Deutche Bank has a lot of problems on their trillions of dollars worth of derivatives bets- pragmatically the EU would be foolish to punish the UK and its trade with them to teach the UK and the rest of Europe a lesson
but the referendum debate is over despite everybody trying to keep it alive and kicking , we now need to move on and make the best of it
The Treasury clearly wants to encourage business ( new banks included ) - just need to be patient and let the dust settle after the crowd cube investment of 3 months ago - when you were presumably quite happy with what Mondo were offering for a slice of the pie ( pre Lloyds rumours )
I really don’t think it would be a good idea for Mondo to link up with Lloyds. I’m a customer with both, and the reason I opened my Mondo account was because I wanted to escape the traditional banks and Mondo was finally putting the power in the hands of its customers (this forum is an excellent example of this, given how many of the suggestions made here have been adopted and made product within such a short time frame).
There are many of us within the Mondo community who were unfortunate enough not to get to invest in the last crowdfunding round, and I am fairly positive that, if Mondo were to open up for future investment from the community, they would be inundated by members of the public looking to pay for a piece of the future banking sector. It’s only £15 million - if they can raise £1m in 90 something seconds, I’m sure they’ll do just fine without joining Lloyds.
Pleased to see you are planning a brexit communication; I await and look forward to reading your views. The referendum was a couple of weeks ago now so Mondo must have a reasonable view of the risks and opportunities posed? I (and I’m sure fellow investors) would appreciate your perspectives on anything from the macro to the micro.
I don’t think 200m is probable in the next round - Investors would “only” be getting about 8% to achieve that valuation, and I don’t think Monzo have achieved that status …yet … as much as it would be very nice for previous investors to get that little dilution.
My guess would be more likely 100m valuation with your 16m ish buying 16% ish- lol thats on my spreadsheet anyway
regarding Passporting - we (banks) would have equivalence rights , unless the EU wanted to make an example of any member wishing to leave the club though wouldn’t we ? .
We obey all financial regulations prior to leaving the club just as all non EU banks operating in the UK have to to gain access to the EU market, nothing changes surely - except we won’t be partaking in making the rules , just as Bank of America, JP Morgan , Bank of Australia etc etc etc don’t partake in making the rules but operate in the EU by “Equivalence rules”
I read about the Mifid II directive and equivalence but am not sure if that’s the complete answer. This article suggests that the eventual solution may be a “three-layer cake”:
However, perhaps the greater question is not ‘if’ but ‘when’ will Monzo gain access to the EU in light of Fidor and N26’s plans to enter the UK. The latter has already gained 200,000 customers across eight countries and is backed by Peter Thiel. Both companies will have first-mover access to a >8 times greater market size.