Will Monzo ever do another round of crowdfunding?

Financial Chat
1

Hi,

Do you think that Monzo will ever do another round of crowdfunding?

Thanks

2

I expect they will do, but they may want to avoid doing it until the economic crisis around coronavirus is over, so that customers can afford to invest and also they can get a better valuation.

Perhaps, if the economy does recover, we could see it in about a year’s time (Q4 2021?)

3

I very much doubt it.

The costs of doing/administering as huge and it’s very time consuming. It works when you need less money but when they’ll want even more cash it’s not such a logical step.

Plus they are better known now, they can get it from bigger investors.

4

It has always* been the case that they could’ve got all their funding from VC investors. Certainly as long as I can remember, the crowdfunding round has always been “We could’ve got this money from our other investors, but we set this aside because our community is important to us.”

Personally I’d be surprised if they went back to the crowd again. The only situation I could see that happening is if they accelerate US plans and need more capital for getting that off the ground. But otherwise, if they just need funding to plug gaps (as it were, like with the last raise), it makes no sense for them to get that from anywhere other than institutional investors.

*maybe not the very first round? But that was a bit before me learing about Monzo, so I can’t be sure

1 Like
5

I suppose it depends if they can continue to get support from the venture capitalists. Like Revels said, it is a bit of a pain in the arse to organise, so I suspect they won’t bother unless they desperately need the cash.

6

Yeah, you’re right. VC guys know what’s going on long before us normos.

Crowdfunding was great PR though.

7

This is why I wouldn’t rule out them doing it again, personally.

Perhaps around the time of US launch, allowing both U.K. and US customers to invest and, at the same time, allowing them to promote hype!

8

I just don’t think it’s worth the effort for them anymore. There are people that bought shares without understanding anything about them and that has also done more harm than good.

The huge cost of another public crowdfunding round could be spent on a much better PR strategy.

9

I understand what you mean, and certainly the logic makes sense, but it was also a really really good PR move so I hope they will do it for a US launch.

Also, due to personal reasons, I missed the chance to invest in the last crowdfunding and really want to so I hope there is a next time.

I have been a Monzo user since the Mondo Beta days in 2016 but haven’t yet invested.