Monzo Crowdfunding 2018


#21

I think these rounds, like all previous rounds, are not so much about attracting investment (they already did that) it’s about letting Monzo customers feel part of the company.

I can’t wait until my Freetrade shares are worth £7.7145 each :+1:


#22

There is one problem with this Monzo fund raise - I won’t have any money to buy stock in my Freetrade account :scream:


(Vladislav Kozub) #23

Sell your Revolut shares if you have any :joy:
/s


#24

Don’t have revolut shares - and also, some insight on future of revolut?


(Vladislav Kozub) #25

Of course not, I was kidding. Otherwise that would constitute illegal insider trading activity… :no_mouth:


#26

Only if you have access to insider information …

But if you spot something off your own back then fire away :slightly_smiling_face:


(Emma) #27

Been confirmed that you need to have signed up prior to today to be eligible to invest


(Danny Jeremiah) #28

I absolutely love how Monzo are going about this, and I think offering it in-app is a touch of genius which could be a bit of a gamechanger (maybe being a little unfair to Brewdog who let you buy shares in their bars)

I now hold crowd-funded shares in 4 companies and there’s something about it that makes an instant evangelist out of you. I’m not exactly sure why, I’m guessing in part I believed in all 4 from the start, but owning even a small part just gives you this will to see those companies succeed.

I now only sell gig tickets on Twickets, always get excited when I see Fivepoints on at a bar and, well Freetrade and Monzo I never stop telling people about…

Monzo’s about to give (tens of) thousands of people that feeling, create an army of company advocates and massively increase the banks’ exposure with news articles etc. Oh and they’re going to get £20m for it too!

Very, very cool. Can’t wait for FT’s turn :blush:


(Mike) #29

Is it going to be possible to invest In the monzo round CIA the Crowdcube app, or only through the Monzo app?


(Emma) #30

Only in the Monzo app. Theoretically if it’s not fully funded it goes to crowdcube but I think that’ll be for the VC not ordinary investors


(Gareth) #31

I’m not a user or investor in Monzo, but does anyone know why they are having another crowdfunding round? I read that they’ve raised significant amounts from venture capitalists, so what’s the advantage of going the crowd funding route through existing users?

My initial thought is that they’re trying to ‘lock’ people into their product, competition is likely to get fiercer as the major banks wake up and start investing in their digital services, plus there’s more and more challenger banks appearing. If a user ‘owns’ part of Monzo, I feel they’re more likely not to switch away (think sunk cost falicy), even if other services are better or are more attractive.

I know that Monzo lost about £30m last year, and people aren’t expecting them to be profitable for another few years, so perhaps this £20m round is just to provide a bit more liquidity? I don’t know, but would be interested in hearing other people’s thoughts!


(Emma) #32

To reward the people who use them and want to invest in them. So many want to invest and they have huge growth plans. Doubt it will make anyone feel tied in, I bought shares in Barclays and my brand loyalty didn’t increase.

image


(Gareth) #33

Thanks for the picture, really interesting to see the breakdown! Is there any explanation behind the 4% expenses? I know that Crowdcube is about 8%, so that’s a decent saving in itself!


(Emma) #34

It’s all being done in app with money available in the account so there’s no card fees to consider. Haven’t seen any explanation but that’s the best idea I’ve come up with


(Vladislav Kozub) #35

Most of it is probably due to Stripe fees.


#36

Crowdcube will be the one working behind the scenes but since this will be done on the Monzo app, does it mean there will be no 1.5% fee?


#37

No 1.5% fee for the investor :slightly_smiling_face:


#38

Bank of Scotland seem to be taking some of the Monzo features and running with them. It’s quite blatant.


(Danny Jeremiah) #39

This one’s becoming table stakes. But they’re behind by like 2yrs so I don’t think Monzo have too much to fear.


#40

Well, some of the big banks have obviously had a look at what Monzo are doing, copied it, and are rolling out updates to their apps right now. Next it will be savings pots, and who knows what else.