We've just closed a new funding round!

I’m relaxed about the down round. All banks valuations have fallen. The fact that Revolut got the value it did at it’s last round is probably more down to timing.

If you want to make money on shares in a bank faster than maybe setup a Freetrade account and buy some shares in some of the older incumbent banks. In the short term they will probably return more. In the long term of course, I would expect them to continue to lose share to the fintechs.

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Ah. I see. Apologies.

Maybe you should research share dilution.

Percentage ownership of a company ≠ value

Sure, the amount of Monzo that investors own has gone down, but going from one minuscule percentage to a different minuscule percentage is meaningless. Ownership amount has only ever mattered for the VCs, it’s irrelevant for crowdfunding investors. The value for crowdfunding investors is in the nominal (and eventually actual) share price, so Monzo are right to focus on this in communications to crowdfunders.

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I don’t think going from one minuscule percentage to a lower minuscule percentage is meaningless at all, isn’t that the beauty of percentages?

If I own 0.002% of Monzo, assuming current valuation of £1 billion that means I need Monzo to reach £50 billion market cap to make me a millionaire, woohoo! but if my percent ownership drops to 0.001% I now need Monzo to reach £100 billion valuation.

If your % holding in a company halves, then that company needs to double in size to meet your objectives, whether you own 50% or 0.005% of the company.

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Tough times for all companies at the moment, Monzo is no exception. And I accept that my investment is now almost half of what it was this time last year …

But that’s what bugs me. This time last year the share price was £13.0194, so in 6 months from December 2018 to May 2019 the share price went from £7.7145 to £13.0194 but from May 2019 to March 2020 it didn’t rise any further? Even though not officially written on paper I’m pretty confident the share price should have risen in that time with double customer base etc.

This March just before Covid started to have an impact, Monzo share price could have been around £22+? so selling at £7.7145 is more like a 65% drop?

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16 posts were split to a new topic: Forum Complaints (moved from Funding Round discussion)

I have a new question…

@tristan can you say if bills pot will get any more love this year, be that something as big as doing subscriptions or something smaller like allowing us to mark transactions as wrong for the upcoming period?

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I can’t say anything specific (yet), but, we currently are building up a small team to focus on making “using Monzo as your main account” better. One of the things they’re looking at is pulling together some of the great, but disparate features we have around this (like Salary Sorter and Bills Pots) in to something cohesive, thought through and more useful. If that continues., then I’d expect some love for Bills Pots :slight_smile: But no promises on timeline or details at this stage I’m afraid

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Now that sounds like something compelling enough to convince me to give Monzo another try at being my main account.

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Thank you but I know precisely what it means and disagree with you that crowdfunders are only interested in the price/share.

Anyway, for those interested, this is how the media have covered this story

https://www.ft.com/content/a748ef21-e877-4c8c-acdb-c5d459cff037

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Yes, I agree with your maths, but the valuations cannot be separated from the number of outstanding shares and how many various VCs have. So it’s not as simple as saying that your percentage ownership has dropped, so your share has less value. It is still the case that the real value for crowdfunders is ultimately the ‘share price’. Whether that comes from owning 0.002% or 0.001% of the company is irrelevant imo.

60 million wont touch the sides.

They’ll be wanting to get plus up and running when lockdown gets lifted and get it right this time.

Thats good to hear, i do think there are definite improvements to be made here.

One thing i will note is i hope things like improved bills pots (incl. subscriptions) aren’t funnelled away under plus.

I feel like we shouldn’t really have to pay for what is really a second current account and is offered by legacy banks for free.

I think that it’s appalling that crowdfund investors weren’t given the opportunity to participate in this down round.

Happy to take crowd money on the way up but not down.

Particularly when management have taken millions off the table, and crowdfunding investors haven’t been given the opportunity to do the same.

It most definitely isn’t “appalling”. No one is entitled to anything, and if Monzo can raise some much needed funds more easily and quickly through VC, they most certainly should.

Otherwise people would be moaning here that the crowdfunding round further decreased valuations or something.

Monzo aren’t on the “way down”. It’s a temporary blip due to the massive global pandemic affecting millions, if not billions, of people

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I never said crowdfunders we’re entitled to it. It’s just my view they should have.

Their valuation is on the way down…

I very much hope that’s all it is. No one can say with any degree of certainty either way, we just have to wait and see.

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Most of the 40% is down to COVID but I imagine some is down to the lack of features and lack in growth of revenue streams I.e. plus

Which they launched and failed twice before COVID

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A post was merged into an existing topic: New monzo user looking to buy shares

Hi @tristan, thank you for the update, and well done for raising further funds. I hope they keep Monzo going for as long as necessary.

ACTION NO LONGER REQUIRED - EMAIL FOUND (though I’ve left my original statement below so @Ordog’s reply makes sense)

You mention all investors through CrowdCube had been informed by email yesterday. This appears not to have worked for at least some investors. I’ve invested in all available rounds, and received no email. I suspect I’m not the only investor in this position. Could you please investigate and confirm back to us what’s happened? Thank you.

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