Tom Blomfield and other top bosses sold shares

I’m sure I read somewhere that Crowdcube were planning on introducing a secondary market (seeing as Seedrs have one), so would that mean Monzo shares could be traded there, once live? Who knows.

its down to Monzo as far as I understand , they have the final say, which is what everybody has agreed to , doesnt really matter what crowd cube want - who knows :slight_smile:

Oh indeed, I think any company (including Monzo) would have to give their approval before the shares could be added to any secondary market. But at least it would remove the need for Monzo to administer it themselves, and approve each possible transfer. Perhaps a minor change to any underlying legal T&Cs, and bing bang boom. We can only wait and see.

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" Tom has probably held back to make sure it does not look like a avalanche of leavers cashing in "

come on lets be serious about this , if and its a big IF Tom was so inclined… when Gary could sell most or all of his stake a year ago or whenever he sold out ,and Tom had the intentions as you rudely insinuate without being open about it … to rinse the crowd cube investors , Tom Im sure as eggs are eggs would have found a way … if he was so inclined … to get his £120 million, or whatever todays valuation is … out of Monzo.

Im now getting a bit tired of your insinuations about the directors of Monzo acting in an underhand manner , because

(a) somebody not being able to fill a form in properly and it being reported as a "cover up "
and
(b) because you cant go against the terms you signed up to when buying your shares.

You should have a think about your unfounded allegations before you post any more :slight_smile: as I have said I get your frustration

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Not insinuating anything just Curious as to why so many founders leaving, CEO changing, valuation dropping 40% - then discovering that founders have cashed out, and it was omitted from Companies House (mistake Of a 3rd party) and only corrected after a member of public complains to companies house

Plus all the other stuff with paid for accounts etc

I think even you Ian can see I have fair cause to be cheesed off and question all of these things.

founders leaving … you would have to ask them as to their motives, as Ive said if I had worked for five years I would want a reward , wouldn’t you ? some will have thought its a good valuation at the time of sale, others will have kept the majority of their holding thinking the share price is undervalued , but wanted to have a draw down for their efforts , some will have other financial commitments to satisfy, some will have been ready for another challenge chasing Alpacas around a field with a lovely red tractor having come to the conclusion that chasing around on foot at 60(?) odd would be too much but still wanted a change .

Valuation dropping 40% already discussed in these threads as you know

omitted from Companies House the original question am I shocked … I am surprised that somebody who is employed to fill forms in doesnt fill them in correctly , I am also surprised that Taylor Wessing can action the submission with missing information ( ? )

I agree you have legitimate right to question these things.

Questions from me , did you understand the terms and conditions of buying the Monzo shares when offered , and , when you gave your money over to buy the shares did you agree to the T and Cs of the contract.

As someone who rarely uses Monzo, here’s my take on how it looks.

Down round

The down round is really devastating to me. N26 raised during Covid, and didn’t face a down round. I know it was an extension of an existing round, but why couldn’t Monzo have done the same then?. It leads me to think there was clearly reasons to take a HUGE chunk off the company valuation. I know it has been largely confirmed this is not the case, but Tom stepping down right before a huge down round is suspicious. Basic logic would have people think this is a stipulation of the round.

Revolut raise a massive 500 million. That’s nearly 50% of Monzo’s new company valuation. With Revoluts new amazing UI, it leads me to think their forecast and constant product release is highly appealing and suggest a really positive future. I don’t know when Monzo last released a feature that their competitors don’t already have a better version of. It’s been so so long and that’s concerning. Monzo feel far behind and stagnant for nearly a year now.

It would be one thing if Monzo was progressing like Revolut and N26, but it seems like the company has been stagnating and a bit more lifeless since these people cashed in. I am sure if they hadn’t cashed in, they would work a bit harder to ensure a successful IPO

Company House

I am not saying this happened, but there are a lot of positive reasons behind these not being on Company House. One of the main reasons that hasn’t been discussed here is other staff. Imagine £33+ million pounds of stock were cashed in. You might have wanted to get in on that. Rather than each person getting several million, what if each member of staff could cash in 50k or 100k worth of stock. What if each founder cashed in one million each - that’s a lot left over for other people. It really feels like a few people making sure they’re set up for life and consciously making a decision not to let other staff cash in. There was clearly room for lots and lots of other members of staff, even lots of staff who have been there longer than three years who’ve sacrificed so much as well. I would feel let down and ready to move on after all the loyalty I pledged and that being the response.

If Monzo had failed and that wasn’t flagged to company house, everyone would have thought we’re in it together. Now that they cashed out, it doesn’t really matter if Crowdfunding investors don’t see a return. These people are set for life.

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Ive a feeling this is going to be my last post on this thread, its got a bit too much conspiracy theory with absolutely no facts from a Times article which was written in a similar vein :slight_smile:

" what if each member of staff could cash in 50k or 100k worth of stock. What if each founder cashed in one million each - that’s a lot left over for other people. It really shows a few people making sure they’re set up for life and consciously making a decision not to let other staff cash in "

thats a big " what if " conjecture

Probably, and I am sorry if that’s the case. I edited it to say “feels like”. I am just trying to look at it as if I was a member of staff who has sacrificed a lot as well. I have no idea what legal grounds surrounded the sale of shares and who is allowed to sell them on what grounds.

I think this situation has highlighted how boring it is to run a highly regulated business (i.e a bank, not a tech startup). I don’t blame the founders and early team for leaving/cashing out, and even Tom for taking a side ways step into his new role.

Unfortunately for all of us crowdcube investors, we can’t cash out - but this was made very obvious to us at the time of buying, and if you read the prospectus for both rounds you’ll know that these sales for early staff were mentioned in the share offer.

Clearly Monzo has had a significant turnover in the C suite in the last 12 months (just look at the faces in the 2019 Annual Report), and the down round will probably be the outcome of this and the COVID-19 economic armageddon. I would say it is a confluence of these factors that have led to the current situation. I hope TS will provide a reinvigorated emphasis into the senior management in terms of Governance & Funding, and Tom, in his new role as President will provide leadership on Product & Community.

I’m still bullish on Monzo, but if they sell to Lloyds or anyone else - we will all still make money.

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I have no idea myself, but do you know if investors and/or staff have preferential shares in the case of a sale, IPO or if Monzo is sold below a certain price?.

I know JustPark gave investors preferential shares over people who crowdfunded.

I distinctly remember after the crowdfunding round that raised 20M, which was in addition to the £100M+ they’d raised from institutional investors, they declared that £10M if the shares sold were not newly issued, but were in fact those of their staff selling.

Therefore, I don’t think this should now come as a surprise.

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By the way @Rika what other ways other then interchange and BoE interest does Monzo make money on a fully in customer like me? Do you get interchange on DDs and FPs?

The idea of spending 80% of your time on regulation brings tears to my eyes.

If only “boring” meant “easy”.

Bank of England interest, interchange, savings, referrals for energy switching, lending (overdrafts and loans), disputes makes income off handling fees to the other side, Business Banking directly charges, then there’s Monzo’s consumer paid offering that we have not given up on (I think business banking has shown that we can make a paid account that works well).

Almost all other fees are there to net out costs including (but not limited to) all ATM fees, international card delivery costs, and cash deposit costs.

In broad terms, Monzo makes more money as people use Monzo as their main account for their personal, joint, or business finances.

We are really focusing in on that lately, and what we can offer for those who have trusted us in terms of features. :hot_coral_heart:

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Is this still a thing? I thought it was in beta but never actually fully released. In saying that it could be because i have a northern irish postcode i cant see this in app as i think it couldnt be done for us.

My main worry with this is that the more things get pushed into a paid for account the less likely i think people will want to use monzo as their primary account in favour of the chasing pack. Gunna be tough to get that balance right

Cool, I’m all in, so glad to be the focus!

I agree, and if you think we are getting that balance wrong, do say.

There are things that people want from Monzo that would not make sense to provide for free. The kind of features that are truly unique in the industry and cost money to both develop and run, but don’t have universal appeal.

Monzo’s mission is to make money work for everyone, but if you want Monzo to do that for you, I do not think that is unreasonable to charge for.

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@Rika I just wanted to say thank you for engaging with the community so much recently, not just in this thread, but all over :slight_smile:

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