Iād also be interested in seeing how many ended up buying shares with their overdraft after all the fussā¦
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I imagine theyāll come out with a favourable statistic of how low the use of overdrafts was for the raise 
I think there were adequate warnings for investors in the questionnaire before investing.
Iām also interested but Iām not starting that up again over on Monzoās forum. Kept getting @ mentions from some users, then no replies to my basic questions. In my view whatever approach Monzo would have used would be circumvented if the investor wanted to use overdrafts. The Times also changed how they reported it afterwards.
Iāll ask the same basic question here.
How would you block the overdraft being used for investing?
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After this Monzo raise Iām curious as to what Freetrade might now be valued at 6 months later.
Where we are now compared to May 2018:
- We have a live app
- We have 1,000ās of active customers
- We have many 1,000ās more on the waiting list
- We have ISAās
- A growing stock universe
- Revenue generation (donāt know Ā£ size though)
- We have assets under management (again donāt know Ā£ size)
Do we think we are valued at +50% or more (or less?)
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Adam said last week that they were planning another round of funding in Q1, so we shouldnāt have to wait long to find out 
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They could have disallowed a purchase of shares which would directly take the account below 0. I think thatād be reasonable gesture, of course it would not stop people who are determined to use debt to buy shares, but thatās fine. In retrospect they should not have had that line in the prospectus, and should just have disallowed directly using the overdraft for share purchases, but itās not that important and itās a shame the Times chose to run such a misleading story.
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Interesting ā¦
I hope back end of Q1 because iāve blown all my money on Monzo, FTSE 100 and Global stocks
Oh and Christmas!
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I know you said it would be a gesture and still open to workarounds.
But imagine I transfer all my funds into a new pot ( if this is allowed ) then proceed in using a overdraft on all spending until the investment goes live. Isnāt this then circumventing it?
There is also a development cost when designing or implementing these features.
The line in the prospectus was a bit strange, unsure if they had a legal obligation to include that.
Of course I am not saying investing via debt is good.
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In other news a prominent crowdfunding platform still lets you invest using Credit Cards 
again donāt go into debt to finance investments
p.s. Iām meant to be biased and evangelical about all my investments, or so the theory goes 
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Indeed. And the Financial Times stating that Monzo is more of a price-comparison website than a bank. I mean, where to even start with that statement.
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Meh Iām a hypnotised member of the Monzo cult 
I took all emotion out of my decision to invest, it was purely on their future potential
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I liked the way they have done it through app.
And the questions you have to answer before investing, nice touch, may be Crowdcube would steal that for themselves.
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Itās interesting that you thought the FTās story was negative, I thought it was pretty positive, especially by Alphavilleās standards -
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Positive but a bit over the top. Someone who doesnāt understand forums
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I only saw negative when I read it, Iāll give it another go with more open-minded eyes. Iāve found recent articles about crowdfunding and Monzo so negative that I think I may have been triggered by the wording I mentioned above.
Itās an odd one, Iād like to think that the financial press would be supportive of a UK startup like Monzo but their reaction to the annual report and the crowdfunding is anything but.
One of the reasons I bring it up is because the overdraft situation was presented as protecting vulnerable people, ahem credit cards can be worse.
There is a long list of issues with crowdfunding platforms, for example they use game mechanics to create a fear of missing out, or to sway the crowd with progress bars, or the way the 100% target is fake like a easy win.
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Obviously Monzo could have easily blocked users from using their overdrafts in this crowdfunding round. They could also stop them from investing using other services to a certain extent, using a similar approach to the one that they use for their gambling block.
The question for me is: should they stop people from using their overdraft to invest in general? (Maybe thatās what you meant). And if anyone thinks that the answerās āyesā, what other bad habits should they block & do you want your bank to be the judge of how you use your money?
I have a feeling that The Times wouldnāt have been so keen to publish the story if theyād thought that all the way through &/or thought that their readers would too..
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Most methods make it harder to use a overdraft for this purpose rather than blocking it completely.
The only real way to stop Monzoās overdraft being used is to turn it off but this has itās own issues.
I donāt think your Bank should police overdraft usage.
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Shows some more stats including āamount investedā. The Ā£0-100 is the largest group
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Interesting that the Ā£2,000 values looks like it might be second highest (close call).
A mixture of wanting to be part of Monzo and wanting to profit from Monzo maybe.
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