We’re crowdfunding up to £20,000,000 and we’d love you to be part of it!

[bea (Beatrice Borbon)]

Next week we’ll be doing a really big round of crowdfunding!

Find out how it’ll work here

We’re crowdfunding up to £20,000,000 and we’d love you to be part of it!

We’re so excited that lots more of you will be able to get involved!

[alexs (Alex Sherwood)]

I can’t wait!

Edit - I might as well make this post useful, here’s the answers to some of the FAQs in this thread

Investing

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Do I need a Crowdcube account in order to invest?

@tristan

No need to have a Crowdcube account

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Who's eligible to invest?

@tristan

Somebody who is over 18, already a customer, and resident in the UK are the main ones

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Will existing investors be automatically notified that they can invest?

@tristan

[Yes] Provided you have the “Crowdfunding Investor” badge on your Profile in the Monzo app, then yes

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Will existing investors be able to invest the full £20m before other investors have a chance to invest?

@tristan

that’s not possible. We have about 7,000 previous investors, so even if they all invested the maximum (which also won’t happen), there’d still be lots left

@simonb

As @tristan said, with about 7000 previous investors, even if you presume they all invested at £1000 (and they won’t, lots of folks invest closer to just the minimum of £10, or around £100) that’d still be only £7m of the £20m target.

Anyone who wishes to invest, provided they do it earlier rather than later, should be able to invest as much as they are able to, up to the £2000 limit. It’s quite unlikely that anyone will be left behind, unless they simply miss the announcement and miss the whole thing.

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How's the round going so far?

You can see how much Monzo’s raised on the dedicated investors page or if you’re a fan of charts, in this dashboard, which was created by @ylt & me.

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What’s the background?

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How did Monzo choose how much money to raise?

@simonb

you only want to take the amount of money that you feel you need to achieve your stated goals in the stated timeframe (plus some runway) and you want to receive an accurate valuation based on that.

Inaccurate valuations are scary and have sunk many startups in the past. If you aren’t able to hit those goals, you may not be able to receive as much capital as you need in the future, and that leads to shrinking companies and mass layoffs.

So, you want to have goals and a valuation/investment amount that’s based on those goals. Those goals will require hard work, but will be achievable, backed up with your current progress to date and how well you’ve achieved any previous goals set in previous rounds.

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How much has Monzo's valuation increased?

This much

Image from the prospectus.

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How was this valuation chosen?

Monzo’s investors agreed on this valuation with Monzo

We’ve just raised £85 million in a round of investment led by General Catalyst with participation from Accel, and have been valued at £1 billion.

Quote from the prospectus.

The company that I work for - Freetrade - has written a blog post about how to value startups too -

Freetrade Invest Hub

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What's Monzo spending this investment on?

@simonb

Right now, we’ve just reached per-customer profitability. Meaning that, for each new customer, we’ll make a small amount of money. This is a very recent milestone, and up until that milestone, we were actually losing money per customer.

However, even though we’re now profitable per customer, we aren’t profitable yet as a company when you account for fixed costs - salaries and offices etc! And it’ll still be a while before we get there!

That said, bar any kind of unlikely catastrophic failing, we know that we’re on track to get there, but we’ll need more capital to do it. We’ll need lots more employees (most notably in engineering and COps), we’ll need bigger spaces to accommodate those staff in places (at different times, depending on location - Cardiff is already planning a move, Vegas will need a move likely sometime in 2019 as well).

So essentially we’ll be continuing to grow our business, in every section from COps to Product to Marketing and everything else. This will attract more customers, give us the required runway to keep growing and operating, and allow us to start looking into things like market expansion (although to actually launch in another market, we’d likely need to do another investment round after this one).

TL;DR you gotta spend money to make money

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More details about investing

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How much do you need to invest in order to receive an investor card?

@simonb

Just the minimum, £10!

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Are we investing at the 'pre-money' or 'post-money' valuation?

@simonb

The venture capital investment valuation included the crowdfunding round, yep. Share price remains at £7.71 including this round.

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Will the gambling block stop users investing?

@simonb

No, the gambling block doesn’t affect investments

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Misc

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Will this (& previous investments) be displayed in the Monzo app?

@tristan

No fixed plans, but it would be really great.

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Will there be joint account investor cards?

@tristan

That’s a really fun idea! But I don’t think so I’m afraid, at least not this time

[anon4562461]

I’m in. Don’t mug me off this time please.

[nexusmaniac (Marcus, Backend Engineer 🛠️)]

Woohoo Amazing news! Can’t wait to invest (but only if Chris gets to )

[tomsr]

Here we go again!!

[simonb]

Let’s do this!!!

[mrkwse (Mark Woosey)]

What precautions will be in place this round? Last time people were signing up repeatedly (for example) and aspects of the process left many people feeling that they’d unfairly been denied the opportunity to invest.

[Dannytc]

I’m seriously considering trying to invest in this. Going to see how much can actually put into this, first time for everything!

[anon4562461]

Can those banned from the community invest? Asking for myself. I’m on a knife edge here

[stephenjames]

Quick question (I think I know the answer) will my Monzo “block gambling” settings stop this? I really don’t want to miss out.

[Punmanuk (Punit Mannari)]

Is there a certain amount you need to invest to get a investor monzo card?

[simonb]

No, the gambling block doesn’t affect investments

[jamesdevonport (James)]

I’ve been in on every round so far an excited to continue the journey!

[simonb]

Just the minimum, £10!

[simonb]

Yes, as long as they kept their actual Monzo account.

[stephenjames]

I noticed the following statement:

Next week, we’re crowdfunding up to £20,000,000 and eligible customers will be able to invest up to £2,000 through the Monzo app.

What is an eligible customer?

[BristolMatt (Matt C)]

@stephenjames

What is an eligible customer?

I wondered that too!

[rarther]

If we invest £10, how many £7.71 shares will we get for that? (if one, where does the £2.29 difference go? is there gonna be a share split to make this add up?)

[Damien]

How does the ‘invest in app’ functionality work with existing crowdfunders? Are our accounts linked from the previous investment and, if so, will that mean it comes up automatically for us on December 3rd and added to our existing crowdcube portfolio?

[MortimerJazz (Morty)]

How long will this be open for? Is it just for a week?