Upcoming funding round discriminating non-UK early investors


( related to Monzo CEO, Investor in Monzo ) #121

it hasn’t been quickly withdrawn - the 71m round had their pre emption rights withdrawn, so in fact the buyers in the round before that had no pre emption rights in the 71m round


#122

I don’t disagree with you. But if I live in Italy, say, I have 4 shares from Round 1 and 2 but don’t get to invest in Round 3. My 4 shares are worth X but with an investment in Round 3 would be worth Y. If and when the company IPOs, I sell my 4 shares for a significantly higher amount than I purchased but the opportunity cost to me because I wasn’t allowed to partake in the final round could be quite significant too. Yes, if they are three individual investments, it doesn’t matter. But Monzo have historically given existing investors a chance to invest as and when they took private investment from institutional investors.

I may be totally wrong but personally, even if I am making money on my first 2 investments, it feels like you should be able to partake in the third.

I dunno… just doesn’t feel right. Perhaps ‘dilution’ was the wrong phrase to use in this scenario.


( related to Monzo CEO, Investor in Monzo ) #123

you would have to know the value of X and Y to know if you had lost out, or just put more money in to get the same relative return


#124

You are misunderstanding me. I meant they were so quickly withdrawn after our initial investment.


( related to Monzo CEO, Investor in Monzo ) #125

when was your initial investment , 51p, 70p, 235p ???


(Duncan) #126

cc @FisherMerton , @WillP79, @Dynamo

There’s no automatic rights to pre-emption (i.e. the right to buy the shares first, on the same terms) for CrowdCube investors. If you want to know the details from the horse’s mouth, then visit companies house, search for Monzo, and pull their latest Articles of Association (top entry, 9th November, 62 pages). Section 11 deals with pre-emption. Section 11.6(f) states that CrowdCube investors don’t have these rights. That’s it.


(Duncan) #127

Yup, you have understood it all. Separate investments, yada yada. I’m with you though; I think you should be allowed to continue to invest. It leaves a bad taste in the mouth. Hopefully there was a good reason to exclude you. Though I would take heart in a few facts: (1) it’s not dilution, (2) your investment keeps growing, and well, (3) Compare the number of shares you get for going in the full £2k compared with the first round you invested in. You probably won’t feel bad at all if you look at that :grinning:.


#128

51p. The 77p round was not even open to small shareholders.


(Stephen Robinson) #129

Good lord wait until you’re the victim of real discrimination.


(Graham - Mental health professional) #130

Understanding the other side of the argument is simple. Agreeing with it is a different thing altogether.

There’s a difference @Recchan. Dialogue can be educational as well as fun. It can…


#131

You may enjoy this video, one part relates very closely to this statement. But I’m not going to tell you where in the video it is, as it is all a good watch:

https://vimeo.com/299168577:


(Ray Singh) #132

In my opinion, As a UK resident I’m not eligible to invest in several countries/products around the world, because I don’t fulfill the regulatory and legal requirements so do I feel discriminated?, NO!

What I can do is to invest elsewhere in other products/regions where I’m fully eligible to take part.


#133

That’s not the point in question. If you are not a UK based investor and you are not a Monzo early investor, everything would be okay.


(Ray Singh) #134

You’re right, perhaps I didn’t read the whole thread!! :see_no_evil::grimacing:

It appears this upcoming round is an exclusive engagement opportunity for the UK based end users/current account holders (like me) so we can own a small share in a company we bank with! I understand your frustration but I guess it’s the way this round is designed!


(Vito) #135

Yes, I’m frustrated and I know it’s the way this round is designed. But i still have hope that they include their loyal non-UK early investors which supported the company while they were applying for the full UK banking licence (2016). Now that they got the UK banking licence, we lost our licence to invest.


(Tom) #136

Cross-posting @tristan’s response from the other thread


#137

At the risk of repeating myself.

I think people need to stop complaining about not being able to invest this round when they have already previously invested - there are over 1,000,000 customers who have never had the chance to invest, be thankful you got your shares at 50p, £1, or £2.30 instead of £7.71.

Also this is not Monzo’s fault - take your complaints to the government.


#138

Sorry to go off on one, but I imagine previous investors are only complaining because they want to increase their stake and therefore make even more money as Monzo grows? All talk of maintaining percentage is a smoke screen, even if you invested maximum every round you would only own about 0.003% - hardly makes you a significant holder.

What about being part of the Monzo story? What about letting others be part of the Monzo story? When you buy shares someone else, someone new, can’t be part of the story.


(Vito) #139

Thanks @Hatticus for cross posting it. I’m fine with their answer so i thank everyone here for your attention to my topic, i got a lot of feedback and appreciated it. I never had the chance to be part of this community and i found out it’s very active.


#140

It’s only a personal view but if you just wanted to be part of the journey, you’d be happy as a user. If you wanted to increase the value, you’d be happy as a user and happy to bring on other users.

These will both impact the value of Monzo positively.

If you wanted to make some money, hadn’t had a chance before because it was a lottery, you’d want to invest.

Just sayin…