The Pledges & Investing


How extremely happy I am to invest in this bank, I have stress tested it in every possible way and this is one of the most exciting investments in my portfolio, and I didn’t know you could double your pledge amount, so I have invested twiceI’ve opened a bottle of Champers!

Announcing Our £22m Investment Round and Crowdfunding!
(Josh Bray) #2

The fact that you could increase your pledge is a bug and I’m certain that you’ll only be allowed what you pledged.



The pledges made when you registered were to help us get an idea of how much people wanted to invest, so that we could make sure there was enough equity reserved for you.

That doesn’t make sense to me. The limit was £2.5m, that hasn’t changed. Am I missing something here?

Someone raised a point elsewhere. What if it’s down to the last £20? Two people get sent the email because they pledged £10. First one there decides to go for £20. Does the other person miss out?


We had days and days to think about how much we want to pledge and to change/increase/decrease pledged amount. It is morally wrong to then let people increase their pledged amount while the ballots are taking place.


30 year old CEO who swears in every other breath… check!
High cash burn and emergency interim funding rounds… check!
Pie in the sky visions of a billion customers ten thousand times more than they actually have and more than every man women child dog and cat in the continent… check!
That’s my stress testing done. :sunglasses: INVEST!!

(Andy Little) #7

I hope I get to invest. But to be perfectly honest I’m annoyed that people have been allowed to pledge an amount and then invest more. That cuts down everyone elses chances even more, I’m not sure if the rules allow it but it hardly seems fair on those of us still waiting to see if we get a chance.

(Josh Bray) #8

Just updated the title of the thread to keep it in line with the conversation

(Paul) #9

If over pledging is allowed then Monzo will have to overfund like other companies on Crowdcube. This would be a lot fairer for those people like myself who just don’t know whether we are going to get that email and really want to invest. I noticed from the screen capture above that the funding is open for 28 days. However I guess that can close early once the target has been reached.

(Alex Sherwood) #10

I know this won’t be popular but genuinely don’t understand the problem with people investing more than they pledged to be honest.

The total that could be pledged by everyone wasn’t capped so before the period for pledges ended we could have ended up with a 1 / 100 chance of getting picked to invest anyway.

Obviously people increasing their pledges means we’ll have even less chance of being selected now but we were never guaranteeed good odds anyway.

I appreciate that if you calculated that you had an x / x chance of investing, after the period for pledges had finished, you’ll be disappointed to see that the odds are getting worse. But I’m not sure that they really are anyway - my guess is that more people will invest less than they pledged, rather than more.

Lastly, the amount that someone pledged doesn’t influence their chance of getting picked to invest.

Am I missing something here?

(Marta) #11

@alexs, that’s logic talking and you’re correct. If anyone invested more than they pledged, it has small or minimal impact on chances of remaining people if we look at totals. BUT, it has some impact and I somewhat expected Monzo to handle it better. For me, this is more of a response related to brand/product, rather than strictly related to investing opportunities. I’m a bit disappointed that rules were not as clear and upfront as Monzo always does (and Monzo got me used to it too!).

(Alex Sherwood) #12

Oh ok so we all think Monzo changed the rules here?

Isn’t this what Monzo’s said from the very beginning though?

Expand the below post by tapping the :arrow_down_small: to see the quote that Naji’s replying to.

(Paul) #13

@alexs @Avishai I don’t think Monzo changed the rules they just were not clear as to what the rules were. All the answers are spread in different feeds within this forum. However what would have been nice would have a been a prepared FAQ style page covering all potential questions in relation to the funding. Instead it has been a race with no clear set rules.

(Tom Warren) #14

I agree with this statement more than anything. I know the odds were incredibly slim, but to see this scenario makes me quite disappointed that it was not clarified up front :disappointed:

(Andy Little) #15

I think it’s more about what the individual considers right and wrong than the actual facts of the thing.

If I do get the chance and I invest more than the £100 I pledged it feels unfair on others. I had ample time to make my decision on the amount and by increasing it at the last moment I’m robbing someone else of the chance to invest, possibly several people depending on the amounts.

I know that the chances aren’t good anyway but it would be unfair of me to decrease them further having made clear previously what I wanted to invest.

(Alex Sherwood) #16

I see your point. I’m not sure the team would have known everything that would get asked, to put in the FAQ so I expect we’d still have ended up here! But that sounds like a good idea for next time.

(Alex Sherwood) #17

As you’ve acknowledged, that doesn’t really make sense, for the reasons I’ve mentioned. But I agree, it does feel a bit wrong.

Apart from summarising the rules & perhaps forcing people to either invest what they pledged or not invest at all, I’m not sure what Monzo could do to deal with this. But that’s good feedback to consider anyway.

(Gareth) #18

Beyond marketing, if it’s a pure random selection until the pot is filled then why ask for a pledge amount at the registration stage?

[bad maths ahead]
Also average odds were not actually that bad?
£12,066,480 / £2,500,000 = 4.826592x over-subscribed
£12,066,480 / 41267 backers = £292.40 average pledge
£2.5m / £292.4 = 8550 people [compared to 2500 if all 100% backers]
8550 / 41267 = 0.207 or 20.7% (or 1 in 5)

If it was all 100% backers (bad assumption, but still), it’d be 6% (2500 / 41267)

(Marta) #19

You missed one aspect. Upto 1,8k users (earlier investors) had priority, they could pledge freely before everyone else was allowed. Because they could take up bit part of the pot with 100% chances, that left a lot less than 2,5kk for remaining users. When second round of emails was sent to users who weren’t first investors, Crowdcube was about at 37% if my memory is correct. We can assume that majority of 37% had to be taken by first investors, but potentially by some new investors too (not sure what emails were sent).
However, due to unknowns (how many investors will reinvest and on what average) it was very loosely included in math we did earlier.

Oh my, why am I thinking math and odds again. :smiley:

(Alex Sherwood) #20

Probably to give Monzo a sense of how much demand there was from investors, generate some headlines & enable the batches to be filled, based on what had been pledged.

And on the flip side - I doubt that one of the main reasons to ask for pledges was to enable users could calculate their odds of getting chosen as investors…