Friday, 21 October 2016
Monzo to raise £4.5m without the Crowd
As if to emphasise the story below, we have been contacted by a Crowdcube shareholder in Monzo (previously Mondo), the challenger bank that raised £1m on Crowdcube recently.
The Board at Monzo have issued shareholders with some news - which if you read our last blog is at least a good start. However the news is not all good.
In the Crowdcube pitch Monzo talked about the need to raise further funding, approximately £15m. The Crowd would be involved. The Board have now decided that they will raise a separate £4.5m now via VCs. No Crowd.
When we asked this shareholder if he thought this was in the interests of all those who backed Monzo via Crowdcube, he said -
Personally I don't think it's ideal - they should've given the crowd an opportunity to, given they point out they "couldn't have built Monzo" without the Crowd's help - and the Crowd even helped pick a new name for the bank. I'm sure the appetite is there.
What this now does is dilute the crowd's holding which may well have an effect when Monzo come back for another £15m next year, We will have to wait and see. As someone once said, shitting on your own doorstep is never a good idea.