Monzo Crowdfunding 2018


(Kenny Grant) #1

Monzo have just announced the terms of their new crowdfunding round, for Monzo customers only via the app.

Investment begins on 5th December at 10am GMT, but existing investors get a two-day headstart, from 10am on 3rd December. The round has a 20 million cap and the max investment is £2000 per customer.

[Edit, removed editorial, added £2k limit]


(Emma) #2

Why do you think they’re unlikely to reach it?


#3

I’ll be looking to put £1000 in. I just hope there’s shares left after the initial investors are done. I don’t think their rewards are very appealing but hopefully the shares will prove to be value further down the line.


(Kenny Grant) #4

[Edit - I removed the editorial from the top post and put it here instead]

I think they’re unlikely to reach £20m invested.

It’s possible I guess at £20 per customer but seems unlikely. Max investment is £2,000 per customer, so they won’t benefit from whales investing a lot, and instead will be relying on a lot of small investments. I was thinking of their previous rounds (on crowdcube), which had 6485 investors on round 2 then 3417 investors on round 3 which was only offered to existing investors. Both of those numbers are a long way away from 1 million investors, and the amounts raised were in the low millions (2.4m and 800k). Anyone have numbers for their first round?

So I guess the two extreme scenarios are:

  • 1 million customers invest £20 each
  • 10,000 customers invest £2000 each

Interesting that they’re doing it in-app and customer only - I imagine that will boost the participation massively compared to requiring crowdcube registration, allow them to manage traffic better and not rely on crowdcube, and also boost their customer numbers a little.

10k customers investing sounds a reasonable aim, but I doubt they’d get £2000 per customer, I’d guess around 20k customers investing with a range of values from £10-£2k each… maybe raising around £10m? If they get above £8million they’d be doing very well.


#5

The max available to existing crowd investors is 14,790,000 so even if they all max out their allowance which is unlikely, there’ll be some left over for new investors.


#6

Excellent. I’ll be buying in for definite and it looks like I just switched over to them in time :+1:


#7

It’ll save in transaction costs as it’ll come straight out of the available funds.


Edit - according to the prospectus this crowdfunding round will still cost Monzo 800k :frowning_face:


(Emma) #8

The reward is the future potential. That’s enough for me. Won’t ask for a card as there’s nothing wrong with the one I’ve got


(Big Boss) #9

Don’t know why people focus on investor rewards… :thinking:

Penny wise, pound foolish, IMO.

Missed all the other rounds. I ain’t going to miss this one.


#10

I looked in the prospectus, and this crowdfunding offer will cost Monzo £800,000.


(Alex Sherwood) #11

My guess is it’ll be pretty much right in the middle of those extremes - 100,000 investors, investing £200 on average but who knows :smile:


(Kenny Grant) #12

100k seems really high number of investors, but then they are doing this in-app which is a bit of a game-changer - exposes it to the 1.3 million banking customers who wouldn’t dream of investing or opening a crowdcube account normally…

I’ll be really interested to see how this pans out, it would be great if they hit their cap of £20m raised. The highest UK crowdfunding raise I could find is £8.2m for crowdcube itself but that includes a single £4m investment, but someone told me on the Monzo thread the largest crowdfunding raise is £26.2m by Brewdog (after a series of other raises), so £20 million has been done before.


(Alex Sherwood) #13

This is a good recap of what happened last time..

from this blog post


#14

Sometimes the investor rewards can be appealing- Like Freetrade’s free Alpha and free instant trades for life. Sadly, I missed out on those.

Monzo are only offering the word “investor” on the card which doesn’t have any real world benefit. I’ll invest anyway just passing comment that their incentives don’t really appeal to me


#15

When will we be able to buy Freetrade shares on the Freetrade app? :joy:


(Alex Sherwood) #16

We’ve been talking about that in the office today, after that news, we’d love to do it :grin:


(Vladislav Kozub) #17

Just to be clear, this is not on offer, only Freetrade Alpha for life (for Founding Members) which offers free US trades and 50p UK instant trades (still free end-of-the-day forever) :slight_smile:


#18

I do hope it happens. As someone who missed out on the first rounds I’d love to get involved :+1:


(Eve) #19

Tbh I don’t think they need incentives, people are more than willing to invest. I’d take even just one share


(Jonny) #20

I’m in the same boat!