It wasn’t a public funding round so no one really got to invest. And further up lots of people, including Monzo, explain why exactly they chose to go down this path. It’s old news at this point
You’ll be saying that about bitcoin again in 5 years
What an utter disappointment. I was naive to think that Monzo was a company that wouldn’t dilute the shares of its loyal customer base. I guess we’re just nobodies to them, since we don’t have the protection of an anti dilution clause.
Well the alternative was your shares being worth nothing because they run out of money
That’s quite the stretch.
which round / s did you buy in ? , how much have you been diluted ?
It’s difficult to tell exactly how much we were all diluted. I invested in 2018. The subsequent private investment round was at a 2bn valuation and was of 130mil, each share was over 13, but now they have issued at least 40% of those shares again because the private investors were protected by a non dilution clause.
Sadly this is probably only the first red flag. I can’t imagine it will be the last, they’ve just demonstrated they have no interest in protecting the crowdfunding investors.
I don’t think that someone not doing something they never promised to do is too much in the way of grounds for a complaint personally. Maybe a little more checking before buying was the thing to do here if this was going to be important to you?
you had exactly the same protection as VCs against dilution from round E and previous rounds , if you had read the prospectus (page 91) its quite clear - so in effect Monzo treated the “nobodies” in exactly the same way as somebody with 5 million quid in their hot little hands clamouring to invest.
" because the private investors were protected by a non dilution clause. " no, all investors were protected subject to the price they bought at since the Articles of Association submitted in 2017
If this funding round had been below the public offering price (£7.71 ?? ) you would be entitled to the anti dilution clause formula benefit as well if you had bought at that price - subject to the caveats in the Articles of Association …exactly like other investors, no more, no less
Someone’s salty today, that’s the risk you take when investing, shares can be diluted anytime when more funding rounds come up, that’s the life of startups.
I’ve learned something today! Do you remember all this stuff or are you on a quick reread regime?
quick read and have an idea where to look
You’d really hope Monzo were applying for these grants also
Monzo applied last time but their bid was unsuccessful.
At the time, Metro, Starling and Nationwide were chosen though some of them have since decided to hand money back to the fund.
Though Starling need to be careful - the only reason they have met their business loan target is as they have included Bounce Back Loans in their stats - before that they were well behind target.
The remedies fund is there to increase competition not concentrate that within one organisation
Hey man, you make a good point. Thanks for the info. However I can’t help but still feel betrayed as the shares were diluted back to the 2018 price thereby negating any earnings thus far. Less to because of what you state regarding the equality of treatment, but still.