Next week we’ll be doing a really big round of crowdfunding!
Find out how it’ll work here
We’re so excited that lots more of you will be able to get involved!
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
Do I need a Crowdcube account in order to invest?
Who's eligible to invest?
Will existing investors be automatically notified that they can invest?
Will existing investors be able to invest the full £20m before other investors have a chance to invest?
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
@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.
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.
What’s the background?
How did Monzo choose how much money to raise?
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.
How much has Monzo's valuation increased?
Image from the prospectus.
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 -
What's Monzo spending this investment on?
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
More details about investing
How much do you need to invest in order to receive an investor card?
Just the minimum, £10!
Are we investing at the 'pre-money' or 'post-money' valuation?
Will the gambling block stop users investing?
Will this (& previous investments) be displayed in the Monzo app?
Will there be joint account investor cards?
I’m in. Don’t mug me off this time please.
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.
I’m seriously considering trying to invest in this. Going to see how much can actually put into this, first time for everything!
Can those banned from the community invest? Asking for myself. I’m on a knife edge here
Quick question (I think I know the answer) will my Monzo “block gambling” settings stop this? I really don’t want to miss out.
Is there a certain amount you need to invest to get a investor monzo card?
No, the gambling block doesn’t affect investments
I’ve been in on every round so far an excited to continue the journey!
Yes, as long as they kept their actual Monzo account.
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?
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?)
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?
How long will this be open for? Is it just for a week?