I’ve seen a lot of these kind of conversations recently and I think we probably just need to recognise how much Monzo did to include people in this last round.
I caveat all of this by saying I’m no way an investor but I do run my own business, so have a rough idea of how things work. Im’ no expert though.
Anyway, a few things here:
- Generally, the only way that you can invest in companies that haven’t floated yet is through Crowdfunding.
- Crowdfunding is usually for four or five figures. If companies need to raise millions, they usually go to Venture Capitalist firms
- Therefore, the fact that Monzo have the following to even think about raising £20m via Crowdfunding is amazing. Is this the largest Crowdfund in history? Either way, the fact that they persevered with it and opened it up to the community rather than turning to their existing VC backers (which I’m sure they’d have had pressure to do) is fantastic.
- That would have been impressive, but they decided to open it up even further by putting the minimum buy in level at £10. To try and put that into perspective, most private investing for businesses that haven’t floated yet will start at £1,000 bare minimum and usually be put at 5x or 10x that. £10 buy-in level is amazing and Monzo should be applauded for that. The figures that have shown the number of first time investors buying in under £100 emphasise that.
- They gave everyone a week’s notice of this fund raise
- There were count downs on all social media channels and the hype on the forum over that week was ridiculous.
So I get that people are disappointed that they missed out but, given the above, you can’t blame Monzo because they didn’t send you a notification when the fund raise opened. You’ve got to meet them half way and at least put something in your calendar if you’re serious.
The first raise was the fastest in crowd-funding history: £1m raised in about a minute. So it was fairly safe to assume that the second fund raise would be pretty quick too.
Having said that, it still lasted almost three hours, which should have been long enough if it had been in the calendar.
I don’t mean to be heartless on this, but I do just feel it’s a bit unfair for Monzo to be getting grief for not pushing a notification through to everyone at 10.00 given everything else that they had done to try and make this last round as inclusive as possible.
If you did miss out though, hopefully you’ll be able to get involved in the next one!