£20 million is a lot to raise I think pledges were £12 million in round 2 or 3 I wonder if it will start with an investment cap say £1000 per person like round 1 and 2 then increase to unlimited if there is unused allocation let’s wait and see
If a company is valued at 250 and there are 1000 shares then each share is worth 25p. Company now valued at a thousand so each share is worth £1. But 150 news shares allocated so you own 1/1150 of a 1000 company. Dilution is necessary but reduces value. In high growth companies it’s part of the ride. As a shareholder you’d still be quids in.
What is the pitch though?
Is it some groundbreaking financial hub taking a cut on referrals?
Is it to accelerate (and attract) the use of contactless by providing real time banking and take a cut of every transaction that would have either been with another bank or in cash?
Is it simply a traditional banking model lending out customers money at far higher rates than paid out as interest?
Or have I missed the picture totally and it is something completely different?
We’ll just have to wait & see
From @iansilversides Forbes article above, scaling to mainstream seems to be the next step which may well include international expansion & then an IPO:
“We’re only at the start of our scaleup journey,” says Tom Blomfield. “We’re at almost a million customers now. To get to 100 million or a billion is a whole other set of steps on their own,” continues the CEO of Monzo.
OK. What has the pitch in the past been? The crowd funders and institutional investors must have had some idea of the investment proposition.
the investment deck was there for all to see in the crowdfunding rounds along with a “financial snapshot” , the annual report has been published on the forum for the past two years for all community members to the free forum to see, read and digest
Do we think this is the last chance to get in before an IPO?
Although I have an account with crowdcube there are no details there now that I can find. I have read the annual reports, watched and listened to Tom on youtube and all I can gather is
We want to build a bank
We want to build numbers
We want to make money work for people (hub)
We want to control costs
We want to have 1 billion + customers
Is that the gist of it? Can you point me at the past investment deck?
if you invested in Mondo / Monzo and press the icon on your portfolio it then gives you a link to the pitch underneath - it downloads into PDF format so won’t allow me to post however it is at the bottom of this article I posted some time ago
- we want to build a bank - guess thats the gist of it all the rest of your points are covered by your first point
Thanks Ian. I’m not an investor so cannot access anything via Crowd cube. I will read the pitch at the bottom of the BI article when I finish shopping.
At the moment Monzo is a bet a high risk bet with excellent return potential I’m back the vision and the values it may work it may not the vc investment gives me validation of the company
I wouldn’t rely on VCs to guide you, they funded Juicero to the tune of $118m