The $ billion and half valuation


(Sacha) #44

Another article from The Times over the weekend.


(Dominic) #45

Thanks for the confirmation. So is the £10.57 per share theoretical and could be more / less than an actual market valuation?


( related to Monzo CEO, Investor in Monzo ) #46

the £10.57 NOMINAL VALUE of Monzo has absolutely nothing to do with the funding share price. Monzo offers ownership certificates in Monzo with a face value of 0.0000001p for each certificate - it just so happens that Monzo has 105million odd of these certificates of ownership which gives a nominal total share certificate valuation of £10.57 odd for the total entity that is Monzo

  • get this £10.57 arbitrary value of Monzo out of your head - it has nothing to do with share “value” in the market :slight_smile:

what anybody is willing to pay for this 0.0000001p certificate of ownership is the share “value” premium - or the Market Value - in the first round people were willing to pay 51p in the market for this 0.0000001p certificate of ownership in Monzo - in the last funding round people were willing to pay £2.36 for the same 0.0000001p certificate of ownership in Monzo

https://www.completeformations.co.uk/companyfaqs/shareholders/nominal_value.html


(Dominic) #47

Ok got it! Got over excited! Thanks.


(Dominic) #48

Guess we don’t know what the market rate is until the next funding round or some kind of exit event right?


(Tom Halloran) #49

Anybody have any intel on whether Monzo will open this crowdfunding round to new investors, or restrict it to only those who invested in earlier rounds?

Missed out on the last ones and don’t want to miss this one!


(Dominic) #50

Has a crowdfund round even been announced?


#51

Yes, unless a seller can find a buyer informally, but even then their agreed price wouldn’t necessarily reflect general opinion. You can only measure general opinion once there is a listing or a new round where people are willing to invest.


(Dominic) #52

Surely Monzo will report the price for share in the recent reported $150 million investment, in the name of transparency…


#53

Not sure that this is about transparency tbh… But more to the point, there’s no evidence that Monzo has actually concluded a raise yet - they’re probably in talks, but I wouldn’t expect any announcement until it’s signed and sealed, so to speak. (At which point, yes, we’ll absolutely know the share price).


#54

Transparent is the last thing they want to be until the time, if and when, the raise is live.


(Dominic) #55

I mean announcing share price after the speculated raise. Not sure I’d invest again unless I knew I would be getting the same price…


( related to Monzo CEO, Investor in Monzo ) #56

I think Ive seen Tom say on the forum or somewhere that each crowdfunding raise has got exactly the same price and terms as the Vc funders - if that helps


#57

It is a market amongst the owners of the shares. Once they are sold Monzo cannot set the price. The value is in the eye of the beholder. Personally I think at 50p they would be worth a gamble, at £10 I would feel that the profit has already been taken by someone else. Can you see in the medium term Monzo becoming profitable and paying a dividend? If so then you buy and hold. On the other hand if you feel the value is in capital growth you have to ponder if there are sufficient other buyers to realise your assessment. We will not know the true value until Monzo floats on a public market.


( related to Monzo CEO, Investor in Monzo ) #58

lol fill your boots if you can get any for 50p :slight_smile: and if there are any left over after you have enough Ill take em


#59

I doubt they would pay a dividend before 2025, but I expect they’ll IPO well above £10 before then.


( related to Monzo CEO, Investor in Monzo ) #60

interesting scaling article about Monzo


(Andy) #61

The value of a share at the current valuation would be around £10 but dilution will move it down a notch from there. Anyone in at the first crowdfund who bought the maximum shares in each round (around £3k altogether) will be sitting on 26k to 32k by my reckoning. I’d bite their hands offf at £10 per share in this round.


#62

Can you explain this a bit for me? I understood (probably naively) that dilution affected the proportion of a company a shareholder owns, but wouldn’t dilute the share price?


#63

The round will be the UK’s largest crowdfunding round to date.

As it is above the European Union’s €8m crowdfunding cap, Monzo will be required to build a formal prospectus for the round.