Agree. Comparing to Wise isn’t straight forward as Apples and Oranges to some extent.
Narrative has to be taken into account with a lot of these things, Monzo raised in Covid when they were over a barrel, hence VC’s wanted a big slice for the money. They then made huge leaps and hence almost trippled the valuation to $4.5bn some time ago now.
They have since made even more progress, are now profitable (without need for more money), still growing quickly, and the market is recovering (stock markets around the world are almost back to all time highs). Monzo is viewed as more of a tech company than a bank, and at the peak companies were talked about having 40x revenue valuations.
Taking a conservative 20x valuation of the current £500m run rate gives £10bn (which is closer to what I’d hope Monzo can achieve at their next raise).
Comparisons with Revolut are pointless, and if anything, Monzo’s banking license is looking more and more valuable.
I spoke briefly with a financial planner i know who told me there is such thing as ‘Pre-IPO’ planning that can help with the tax, but i don’t know what this entails yet. It’s also quite complicated as Crowdcube are the nominee, so I also don’t know how this might impact any planning i can do.
In summary… I have lots of ‘i dont knows’ so would like the IR team to shed some light on this
$12/share would be daylight robbery! I also presume you’ve read the wiki on Share sales… it’s mostly a no go!
Although, Crowdcube are developing a secondary market (Cubex - i think is the name) so it may be possible at some point in the future to sell via Cubex without involving Monzo at all
Ah I didn’t use crowdcrube for my shares, so I presume selling them wouldn’t be too much of a faff other than the tax!
$12 / sh is low, but immediate liquidity is nice, I agree it’s probably worth more in “imaginary money” but to be able to sell it right away they could buy at a discount
Like anything it’s really just the value people will pay for the shares. As Monzo shares are not currently for sale there’s really no current meaningful valuation figure. Until they either float or raise again there won’t be.
You’ll usually need board approval to transfer the owner of shares before a company has been listed.
There may be a workaround whereby you still own the shares on paper but there’s a separate contract that entitles the other party to the value of the shares. Solicitor advice is highly recommended before engaging in any such contract.
