Are you saying that in the current climate, your valuation is more accurate? Have you forgotten the time when tech stocks were hugely over-inflated a few years ago, a retail crash happened alongside covid, borrowing at an all-time high, tech stocks plummeted, in a recession? 
Be sensible.
So you basically Monzo had an amazing last 18-24 months but or share price hasn’t gone up 1p, great! 
Before people say it’s been a tough market blah blah, even a small increase in valuation would’ve been great.
I just hope it bloody means the IPO would be priced at least double the new valuation. 
If the shares had doubled in price, it wouldn’t mean anything. You don’t have that money.
Have they issued new shares at the same price? Does this mean the pie hasn’t gotten any bigger but our slice has shrunk?
Just asking the question as it would be good to know from someone who knows how this has be structured and how it impacts our shares etc
The percentage of Monzo you own will have decreased, but the value of that percentage is the same.
Who told you that? They’ve had a terrible time in terms of valuation. Lots of great product stuff, though. Just valuation = garbage in that period.
@breville_monkey addressed you on dilution, but here’s what your share price did:
The problem is that we had a pandemic and then a recession with the first significant interest rate rises in 40 years. The former meant that Monzo ate three rounds at a down-valuation (3 cash separate cash injections at the same valuation, over the space of a couple of years, in their “G” round), and the latter means that money is more expensive now (that is literally the definition of an interest rate) so while you think you should be seeing 2x nominal change in your share valuation, in fact you likely are seeing a significant uplift, its just buried behind the higer (global) cost of capital. Not every business is capital-dependent (many are, even when IPO’d, but for instance Apple isn’t), but a pre-IPO VC-backed-startup on the elevator towards IPO is completely capital dependent, so Monzo are eating it on this round, too. There are a bunch of other things going on in the background here that’s driving the cost of capital higher; boomers are entering mass-retirement (where does a bunch of that VC money originally come from? - Pension funds), globilisation slamming into reverse, The US withdrawing from “world policeman” role (open your atlas and draw on it all the new wars we have going on. Scary huh?), and we’ve basically maxed out our ability to fund ourselves with ever decresing interest rates (global debt is at astronomical levels).
So the long and the short of it is that the entire economic system in the world recently tore iteself in half, so you’re actually damn lucky that your shares are flat. In fact, I think that whoever put this deal together made an effort to make it look that way so that the uninformed wouldn’t lose their crap. I, for one, am happy that Monzo in the face of this environment seem to be able to convince the owners of large blocks of capital that they’re a worthwhile prospect, because that means I get to come along for the ride still, despite a bloodbath of economic conditions.
That is my point and I’m sure I won’t be the only one, if there were minor improvements in product, no new revenue lines launched and the customers grew marginally then fine but when you hear Monzo shout out from the roof top about great it’s doing with new revenue streams coming online, uplift in average deposits held in accounts and the significant increase in customers then you’d think there should be some growth in valuation.
Yes, I accept your claim valuations have been difficult in the market but when you’re doing well then you’d think that won’t be the case.
Anyway thanks for the details response, let’s just hope the use the funds to grow in the US market for it to have impact when it comes to IPO valuation.
I do think that there is though. It’s just hidden. We are staring at one number, but we are not seeing two things cancel one another out that lead to that number - more revenue, on-track for profitability, more users on the one side of the scale, and all the above mentioned horrendous economic issues on the other side. Other fintechs have done far worse.
Ultimately management have shopped this deal around a bunch of large investors, and this is the price they think it’s worth. If there were a better deal on the table, management would have taken it. So we can say “but but but” all day long, but what unfortunately matters is what people in charge of billions who presumably have extensive experience in valuing companies and valuing their own capital in a given environment, think it’s worth.
Hopefully the new super secret launches coming up help boost profitability.
Hopefully that’s £340 million into better joint accounts 
I joke, congrats
Anyone disappointed by the lack in Monzo share price increase should be grateful Monzo didn’t pull a Freetrade.
Do you know how ecstatically happy i would have been if the Freetrade share price hadn’t moved an inch from £9.25?instead it dropped a mile.
Didn’t invest in Freetrade, what did their price drop to?
Looks like £2.60. That was last June though and they’ve been profitable in the past few months from what I recall so hopefully there’ll have been an improvement.
(Edit) just checked and I bought in at £1.48 on average so it’s still in the positive for me
I think that’s what the comparison is trying to show?
I think so? Let’s be glad Monzo are doing really well and not doing a Freetrade? well anyway I didn’t write it so I could be wrong
Anytime soon we can sell some Monzo shares, need funds, remortgage coming up.
They mention ‘doubled revenues’ - Is this doubled between '22 & '23 or can we expect them to have doubled the '23 number…therefore revenue will be c.700m this year? (Double the 355m in '23)
Seemed to be using the past tense as I read it. That’s not to say the trend won’t continue 
It’s nice to see an edition of ‘The Loop’ land in the inbox!
No.
