Monzo Crowd funding

trytosave99

Hi I'm a newbie to the forum
Has anyone got a monzo account and considering investing in their latest crowdfunding?

I have been interested in investing in shares for a while but am very inexperienced and just wanted to know if anyone would be able to provide some advice

Many Thanks

masonic

Do you have an annual income of over £100,000 or net assets (excluding primary residence) of over £250,000? Are you willing to accept the significant risk of losing all the money you invest in this opportunity?

Have you or do you work in a professional capacity in the private equity sector, or do you have experience in investing in unlisted companies and will be investing in Monzo as part of a diversified portfolio of such investments?

If the answers to the above are no, then this opportunity is not for you.

masonic

trytosave99 wrote: »

Hi Masonic

I currently have £20,000 that I would like to invest into stocks and shares a my reasoning for investing in monzo was due to their dramatically increasing share price, also i have been a user of monzo for a year now and see potential within their company

But no i have no past experience of investing with unlisted companies

Investing in a single FTSE100 company is very high risk investing. Investing in a single fintech startup is akin to putting it on the 3:30 at Newmarket.

Presumably, having done your research you are aware that Monzo made a loss of over £30,000,000 according to their last filed accounts, up from a £6,700,000 loss during the previous financial year. No wonder they are crowdfunding again!

If they are unlisted, then their "share price" is based on their own valuation.

Alexland

Investing in single companies is extremely high risk especially if it is your first £20k investment.

Get yourself over to Vanguard Investor and look at their LifeStrategy funds. Diversification is the key to a better risk adjusted return.

Alex

6022tivo

I was also interested in this as a little fun.
I do use Monzo and really like their platform.

I see the valuation and I'm not sure people realise that they can not actually sell their shares, so it is a very long term investment. You will have to wait until they decide (they may never) to list on the stock exchange to think about getting a return.

I'm tempted to sink some money in though, just for the bants.

dont_use_vistaprint

Look what happened to Funding Circle IPO, Fintech is possibly most overvalued of all stock.

Can anyone answer this - what are the rules on customers investing. With FC they almost offered users a pre-IPO deal, but it was blocked or something. These companies have our money already, so does that get any preferential deal when they IPO.

6022tivo wrote: »

I see the valuation and I'm not sure people realise that they can not actually sell their shares, so it is a very long term investment. You will have to wait until they decide (they may never) to list on the stock exchange to think about getting a return.

I'm tempted to sink some money in though, just for the bants.

Didn't realise , assumed it was an IPO. I'm now tempted !!!
One of the only current accounts I can recall to have a waiting list due to demand, but how will it pan out , no one knows....

Malthusian

As the shares can't be sold, the "dramatically increasing share price" means nothing except that suckers get three times fewer shares than the previous round of suckers, while the owners cash out three times more real money per share.

And a sucker is exactly what you are if you punt all your money into this firm on the sole basis that they're offering you three times less than they did last time around.

If you're a seasoned venture capital investor and invest in Monzo after real due diligence (not the pretend due diligence favoured by most crowdfunders) including an exhaustive analysis of its financial projections and audited management accounts, querying the soundness of its assumptions and running what-if scenarios, then this of course does not apply to you.

dont_use_vistaprint

Malthusian wrote: »

As the shares can't be sold, the "dramatically increasing share price" means nothing except that suckers get three times fewer shares than the previous round of suckers, while the owners cash out three times more real money per share.

I agree but that's how the world of start-up is, those that invest first take the biggest risk, often on just an idea, now's its become a brand name and has a customer base theres less risk , so surely that's fair that those investing now get much less benefit and the owners make much more money because their idea has now worked ?

Alexland

dont_use_vistaprint wrote: »

now's its become a brand name and has a customer base theres less risk

You could say the same about Wonga. Sure the assets grew but so did the liabilities. Any idiot can spend other people's money getting awareness but the skill is turning the brand into a proper viable business. Until then the risk is unchanged.

Alex

6022tivo

I am going to buy one share £7.71 just to get the Investors Badge on my App, and site. I also get a Special Investors Bank Card as well.
Worth it, just for that.

Alexland

Those things are really not worth £7.71 in the real world.