What does this mean? - Crowdcube figures


(Danny) #1

So looking at the latest Crowdcube figures it shows there is only four days left with just under £850k to find, this is a massive difference compared to the last two rounds where target was hit much earlier (IIRC)… was it a mistake in capping us from buying more shares, has the razzle dazzle worn off, what will happen if target is not hit?

Am I reading too much in to this or are these genuine questions?

Anwway at least it’s somethings to discuss…

EDIT:

I’m not knocking Monzo I was just wondering


#2

Pretty sure only investors can invest this time? I’m not an investor but when I looked on crowdcube for Monzo there was no option for me to invest :frowning:


#3

No nor me. If they can’t find the money from existing investors, why not open it to the people who pledged but weren’t chosen in the lottery???


(Danny) #4

If funds are not found does CrowdCube not close that pitch though as I don’t think it can be changed midway through?


#5

I agree, if they can’t raise the money from existing investors, pledgers who were not chosen should be invited to invest


#6

I suspect the fact that the shares are now significantly more expensive compared to round one and two has affected the appetite of existing investors for the offer.

If someone invested the full amount in round one and two they’d have somewhere around 3000 shares and that will have cost them a total of £2k. They will now be offered the chance to buy around 500 more shares for another £1k. That feels expensive when you’ve already bought in at the cheaper prices.

Of course, each opportunity to purchase shares should be judged on its own merit and everyone should approach these things entirely rationally, and Monzo is in a much stronger position than it was a couple of years ago.

However, I suspect psychologically that’s quite a hurdle to overcome.


( related to Monzo CEO, Investor in Monzo ) #7

pound cost averaging :slight_smile: in the next crowdfunding round the shares might be £5

  • might not be :slight_smile:

significantly more expensive because they are significantly further along the road ? :slight_smile:

it all comes back to the eventual IPO price , if you can buy now at 2.35 something that may be worth a lot more (or nothing if no IPO and Monzo goes bust) in 5 years time would you just because it seemed expensive at the time

I look at my shares in other companies that I bought 2 years ago and some are showing a 60% profit - being significantly more expensive now - would that stop me buying the same shares today at the increased price - no I have done , instead of a 60% profit Ive doubled my stake in them and only showing a 30% profit - I like what the company is doing and they seem to be doing it well and I expect them to continue increasing their share price all being equal.


(Simon B) #8

I suspect it’s because we’ve not really advertised the fact and that it’s only open to existing investors.


(Tom ) #9

I’ve not yet completed my purchase as there’s no pressure or rush. I suspect the same of others. I also know of one other person who’s having issues completing the purchase and Crowdcube is investigating.


(Sy) #10

I don’t think it is the cost per share, I think it is the fact that people are seriously restricted by enforced caps. So for example they may not be able to buy £100 as they may be limited to perhaps £60 or £70 as one user said previously. That must put off a lot of investors who want a neat portfolio without little itty bitty share allocations in it


#11

Me too. Although if there’s a chance it’s not going to work, I’d better get on it!


(Danny) #12

I would have liked to have bought a lot more that what I did last round but I was restricted.


(Tommy Long) #13

For me (and a few others I know) it’s the cost. If you bought lots of shares at 50p and £1 then it’s entirely possible you might not want to buy at £2.50.


(Sy) #14

The cost of shares is irrelevant. In some firms you buy a tiny fraction of a share and in others a number of share depending on how they slice the cake. A few thin slices is still the same as one big thick slice. What matters is how much you are spending.

Each wave of shares will be at different values but ultimately the value of shares will only be known when going public thru IPO or takeover.

However whatever you pay for your shares their value is still higher than face value or book value it is based on supply and demand.

Whereas Tandem shares were being offered for sale at about 1/5 of their value people have offered 150% (or more) for Monzo shares.

Any shares you purchase will therefore be likely a good bet, but as not publicly traded you need to be happy to tie up those funds for 7-10 years perhaps…unless Tom etc sell out before and head for retirement in the sun


(Tommy Long) #15

Okay, then reword my post to x, 2x and 5x instead of 50p, £1 and £2.50. The point remains the same. Some people like to invest in early small-cap ventures with higher potential returns.


( surohpotsirhC) #16

I like the idea of the spare being offered up to those who pledged and missed out. Mainly because that means I’d have a chance to get some :smiley:


(Sy) #17

But it matters not if the shares are worth 50p £2 or £10 if the return will later be 250% you are getting that return on the amount of money you spent on those shares the fact you may have 0.005% of a higher value share or 5% of a lower value share does not matter, it is the difference between how much money your share purchase cost v how much your shares were valued at when finally sold. Proportion of shares is irrelevant all that matters is the money.


( related to Monzo CEO, Investor in Monzo ) #19

my maths :slight_smile:
I bought roughly 2000 shares in the first round at £1000 cost per share was 50p , I then bought 1000 shares for £1000 in the second round because I thought they were still a good bet at £1 / share
I have 3000 shares for £2000 - 66p / share

should I now buy another 500 shares for £1000 I will have 3500 shares for £3000 - or 85p a share

IF_emphasized text_ Monzo IPO for £5 a share I will have 3500 shares @ £5 or £17500 total for £3000 - £14500 profit
if I keep it at 3000 shares I will get £15000 for £2000 - £13000 profit

if they go bust Ive lost either £2000 or £3000 :slight_smile: if they do well Ive increased my profit by around 10% for increasing my stake by 50% ???


#20

There’s a number of us in this boat.


(Tommy Long) #21

I have no idea what you’re on about. The expected ROI from 50p was enough to make me invest, as was the expected ROI from £1. From £2.50 it’s not compelling enough for me to want to invest more