thanks for finding that!
@saf I think some of the skepticism really comes from the fact that their proposed model is untested and unproven as it currently stands. I think a lot of commentators, users or financial services people simply donât understand the model. Even some people within the heady world of FinTech donât buy into it, yet.
So the lack of understanding leads on to the pesky issue of valuation. When you have a paradigm shifting model, with no real multiples to derive a meaningful valuation, assessing all the other factors, tangible or otherwise becomes more of an art than a science. The valuation trap is compounded by the propensity to compare to what we know, i.e. other banks.
User growth is great, âtech orientedâ valuations are great, but if itâs always a question of jam tomorrow, at some point youâre going to need to come up with the goods else things start to unravel. Just ask Elon!
I am totally behind Monzo though, I support both the vision and the ambition, but having a fair shot a success is, and will be for at least a little while yet predicated on their ability to raise new money, which in turn relies on investors keeping the faith.
This is a super positive step, itâll be the first taste of a prospectus for a lot of investors.
Even at a cap of ÂŁ1000 itâs really just a token gesture to the crowd, but itâs important as it could be the first time a lot of people have invested directly in a business, and if theyâre customers, itâs a business they know and mostly love. On that basis I could get behind ÂŁ500 if itâs a question of maximum inclusion, but how expensive will the buy in be? And does it matter?
So this is my first post here. Ive come straight from the Monzo community and I have switched my full banking system to Monzo, which we call #fullmonzo. To be honest its the greatest banking experience Ive ever had in my life and I couldnât think of ever going back to a legacy bank. Monzo is growing day by day and I think investing in them is a fantastic idea. I certainly will be investing in them once Freetrade launches. I have over 50k people ahead of me though. With the launch of a pot of money earning interest happening in the next few weeks, I would love if there was a collab where a pot could be viewed in Monzo app but held by Freetrade and therefore have all my investments and portfolio in front of me. Exciting time ahead of us!
Hey Shae and welcome to the community
You will probably notice that many Freetrade community members would be aware of Monzo, so you may meet people that support them as much as you do (myself included)
Just to clarify, you could not invest in Monzo via Freetrade, you will most likely do that on Crowdcube.
Donât think too much of the queue, you are in the luckiest position to have joined just a month before the anticipated launch, hence your total wait will be by miles shorter than those who are 1-1000 in the queue
And just as you say, many of us also favour Freetrade-Monzo integration and the idea of users having part of their [not needed shortly] cash invested in the market, so watch that space too!
For future reference, Iâm guessing the billion plus valuationâs going to make people pause before investing in this next round so hereâs our guide to help you figure out whether itâs a good idea or not -