We’ve just announced a new round of funding

We’re excited to welcome Y Combinator Continuity and Latitude as our newest investors.

Thanks to everyone that’s supported us so far :heart:

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Where’s the cake? :cake:

There is no celebration without it! :-1:

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Monzo’s worst kept secret?

Glad the :cat: is finally out of the bag!

The cake is a lie :robot:

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This great news! How (if at all) does this impact investors from last year’s crowd funding?

It is quite difficult to articulate exactly what it means as it is fairly intricate but to put simply:

Monzo’s value has increased since last crowd fund = shares you bought are worth more

This is fettered however because new shares have been issued = your shares “worth” has been diluted by these new shares.

Overall, pretty good as it shows the company has “grown” - but your shares are still illiquid, difficult to sell and the beauty (read value) is completely in the eye of the beholder

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What valuation was the investment calculated on? What is assumed value and share price on the basis of this round?

I’d like to refer you to the post directly above the one you’ve just made :man_facepalming:

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I think Will has a valid question.

I understand what Jordan is saying - to put it simply - the number of shares a shareholder holds doesn’t change, the value of those shares goes up, but the percentage holding of the company (dilution) goes down due to more shares being issued.

If we know what the current share valuation is, we can calculate easily what our shares are now worth. Is it not that easy?

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it is that easy , but until you have the information of how many shares were issued for the money that Monzo received for them , we are all just guessing, and Monzo aren’t saying at the moment , they will have to make a declaration in companies house at some point of the number of series F shares were issued

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That calculation you are correct is easy to do - Total valuation of the company divided by total shares in issue = price per share.

The difficulty is the valuation of the company (IMHO) isn’t stable and things like pre and post valuation can make it tricky. You also have the added annoyance of not being able to freely trade the shares.

The “correct” share price may not be anywhere near what someone wants to buy or what something thinks they should sell at.

As @iansilversides says we don’t actually have all the information at the moment, and I figure, by the time we do, the valuation will likely be a tad out of date.

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Thanks guys. I understand pre and post money as well. I suppose without visibility of their cap table we’ll have to wait for their Companies House declaration and see! Even then, as you say, shares are really only worth what someone will pay for them.

Thanks for this discussion thread. Very helpful. I came here to see if a new share price was announced alongside this investment round. How would one know when the Companies House declaration is made? Is anyone up for volunteering to post an update here? Please “@“ mention me if you do :smiley:

@nadnosliw

Monzo made it easier then waiting to see!

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Snap!

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:joy:

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Congratulations - this is fantastic news.
Quick question - any plans for a crowdcube round to help existing shareholders avoid dilution?

Thanks

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I’m worried that the bigger Monzo get, the easier it will be to forget the crowdfunding investors that helped put them there in the first place. I hope that’s not the case, but I fear it will be.

I think it is inevitable that existing crowdfunding shareholders will get diluted. Monzo will not need to tap into Crowdfunding after it gets to a certain size. That size may have already arrived, but I hope not.

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I thought the shares came with pre-emption rights, so we couldn’t be diluted away? Hopefully someone from Monzo with a better understanding of things comes back to us on this.