You’ve invested £20,000,000 in Monzo! 🚀


((╯°□°)╯︵ ┻━┻) #355

I guess if you were really committed to getting some shares then you could have found a way. Some people were taking toilet breaks, some got partners to buy theirs, others pulled over at the side of the road or even take a half day holiday if you really needed to.

What nobody was prepared for was how quickly they sold out (although that is debatable too) and with how fast they sold last time this should have been taken into consideration too.

Unfortunately none of this helps the situation now :frowning_face: Next time I can’t see them opening it up to non-investors first so sadly the only option is to chalk this up as a lesson learned and be more prepared for next time or try and find someone who is selling some :slight_smile:


(Morty) #356

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!


(Graham - Mental health professional) #357

…so said Warren Buffett :grinning:


(Michael) #358

Bought mine on walking over to lunch around five past 12, a little shocked that they were already at around 18.5 million. Had expected to have a bit more time to sort! Waiting on the transfer from Marcus to go through was a long few minutes against the clock


(Mike) #359

I guess the motto here is… You snooze you lose :rofl:


#360

+1 - the fundraising process was designed to create headlines (about how fast the shares were selling out), rather than to give longstanding customers a chance to invest.

Most share subscriptions provide a window of several weeks to sign up, then prorate the shares across all the customers who signed up.


#361

I’m sorry to say but 33,549 new investors, who are all customers in Monzo, stand to differ with you on that point.


(Andy Hughes) #362

While I understand the disappointment of not getting shares, I don’t understand what’s ‘unfair’ about this really. Everyone had the same opportunity. Monzo can’t possibly take into account the personal circumstances of every would-be investor?


#363

A common process for share subscriptions is to leave them open for some time, and allocate shares at the end of the subscription period. This means that nobody misses out because they are e.g. travelling in a different timezone for example :angry:, the downside of course is that buyers may get a reduced allocation of shares if the offer is oversubscribed.

IMO this would have been a better way for Monzo to raise funds, in that more customers would have had the chance to invest.


(Splodf) #364

Sounds like sour grapes to me.


#365

“Sour grapes” is when you fail to get something, then claim you didn’t want it anyway.

I wanted the damn shares :slight_smile:


(Richard McIntyre) #366

I am normally really rubbish about being on time for stuff like this, but even I felt like I had plenty of time to purchase shares. Far easier than buying Taylor Swift tickets! - I am not a fan. Honest!


#367

Indeed… Personally I don’t want another round - it’ll dillute what I’ve just bought :stuck_out_tongue_winking_eye: indeed, at £7 a share I thought the price a little steep - but still some room for value. There is a danger the share price could be inflated on hype / FOMO akin to crypto. I’m just waiting for the IPO, or some big established bank to buy Monzo out. Monzo won’t topple the establishment - but does have chance to change it.


(Gav) #368

Great post. I didn’t invent (although had intended too) purely because I didn’t get round to it until about 1330.

Absolutely no-one to blame except myself though. I think you’ve articulated really well just how inclusive Monzo tried to be. Also demonstrated by new vs previous investors split.


#369


(John Williams) #370

yes you can - easily done - new one arrives quickly - not a great improvement on the design but there you go
will keep my old card for posterity

simple to activate new and old to deactivate


(Trevor Mitchell) #371

Hi Guys, I am fortunate enough to have grabbed a small slice of the fun in the recent crowdfunding round, now I understand that to do this I needed to have an active crowdcube account (which I did) so what I’m wondering is that once the dust has settled will my my monzo deal appear in my crowdcube portfolio? This is where I’d like to see it.


(MikeF) #372

There was no requirement for a Crowdcube account so I don’t think it’s yet clear how this will be managed. I’m guessing accountsbwill be involved somehow but whether visibly or behind an integration, I don’t know.


(Ted) #373

I was in away when shares went on sale for public.
Tried for good hour and always was some notification ( oops something went wrong ).
I don’t think monzo expected that high demand.
I got change to grab some not much.
Tried to buy more but couldn’t even added more shares account.
Think was locked for one time only purchase like if you but 20 shares that all what you can get .
A bit silly as i didn’t exceeded individual invest amount just want but few more but system won’t let me.


(Splodf) #374

It did say you only got one chance to buy and that you wouldn’t be able to adjust your amount.