We've just closed a new funding round!

Hi everyone :wave:

We wanted to let you know that we’ve just closed a new funding round. We’re really pleased, especially given the current economic climate.

We sent this email to our Crowdcube investors today and wanted to share it here too.

Please thread any questions below and I and the team will do our best to answer them :slight_smile:


An update on your Monzo shares

We’re writing to let you know that we’ve closed a new funding round with our existing investors Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive, Passion Capital and some new investors.

You don’t need to do anything. Your shares are worth £7.7145 each – the same price as during our December 2018 crowdfunding round.

This means:

  • if you invested in our first crowdfunding round in March 2016, each share’s worth 15 times its original value

  • if you invested in our crowdfunding round in April 2017, each share’s worth 7 times its original value

  • if you invested in our crowdfunding round in November 2017, each share’s worth 3 times its original value

  • if you invested in our crowdfunding round in December 2018, each share’s worth the same as it was then: £7.7145

Closing a new round is great news for Monzo. Our investors continue to support our mission to make money work for everyone. This means we can keep growing and building products that give people more control over their money – even in the current economic climate.

As well as raising new funding, we’ve also given investors who invested in our Series F funding round last year additional shares to put them in the same position as if they’d invested then at a share price of £7.7145.

Since our last crowdfunding round in 2018, we’ve grown to over 4.2 million customers, filed for a banking licence in the US, launched Monzo Business, and become the most popular bank in the UK to switch to. We can’t wait to show you what’s next!

If you have any more questions, please read our help article or get in touch by chatting to us in the Monzo app.

Thanks,

Monzo

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We can’t wait either!

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Great news! :partying_face: Congrats!

It’s good to read what the shares are worth too after much speculation and argument on here in the past.

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How much has been raised?

From https://monzo.com/help/legal-stuff/june-2020-fundraising

We’ve raised £60 million, which is a big achievement. The round involves existing investors Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive, Passion Capital, and some new investors.

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Why cant i help but feel shortchanged here?

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Great news! Does this have any effect on the potential redundancies people have been talking about recently?

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A bit disappointing that share prices have fallen, but I expected it given the current climate. Hoping for growth once again soon! :smile:

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Can you expand on the why there?

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Great news! Will existing Monzo customers or shareholders be able to invest in this funding round aswell?

Did you raise this at a 40% downround, approximately £1.25bn valuation?.

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So people have been given shares to put them in the same position as people who paid for shares??

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Was this funding round entirely private / not open to new investors? I went looking for a Crowdcube link a while back but I take it this wasn’t open on that platform?

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I doubt it… you’d probably find that the share price has held up because of the redundancies, because investors see that Monzo has adapted to the crisis, has a credible route through it all, and is likely to survive the ordeal.

Because the company has grown massively since Dec 2018 but the shares are still worth the same.

Anyone know where we can see impact of previous share splits, etc on the number of shares we hold?

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no …read the articles of association

When will this be? I haven’t heard anything about another funding round?

The number of shares you hold hasn’t changed - your % has probably changed.

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There is no new crowd funding round announced. This was a private funding round specifically for private investors, mostly existing + some new.

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They funded it in a private round without crowdfunding. They gave y combinator more shares so they won’t feel bad about their decision to invest at 2 billion valuation. For two years monzo valuation remains the same with cut back operations. Hopefully it means going forward it is no longer a company of inflated value.