Money Dashboard Crowdfunding - Am I Missing Something

You don't pay anything for Google and that's worth several hundred billion. I imagine once they have enough users they'll market products to them and take a cut. If it becomes a smart service they may even recommend services based on your accounts and profile. Does it not say in the prospectus?

I had an email from one of my banks, Barclays, a few weeks ago, informing me that due to new open banking standards I could now configure things so I can access and see my other bank accounts from within my Barclays App.
So, if there's no longer any "secret sauce" to have this functionality, what do MD have to make them worth millions ? That's an open question, maybe they have something, but it's hard to make money when competing with free, plus if Barclays are offering this, so will others, and that will inevitably lower the % of users who would use a third party.

I see from a cursory skim that moneybase do more than just present all your accounts in one place, they also analyse your spend and are a sort of budgeting app.

What the appetite for that is I dont know. YNAB make a living from it so this would be a rival to that i guess. No idea how big YNAB is to try and estimate the market share, i suspect they are privately owned.

pramsay13 wrote: »

Recently I've been getting messages to invest in Money Dashboard which it is valuing at £21,000,000.

Now Money Dashboard seems to have around 200,000 people using the service, but that means that everybody using it is worth £105, but considering it is a free service how is that possible?

It doesn't really mean that as such, you've just chosen to divide one number by another to give a fairly arbitrary third number!

pramsay13 wrote: »

At the minute there is no advertising on money dashboard and no marketing of products so I'm unsure where the valuation comes from. The prospectus says that they generate revenue from "insightful market research based on anonymised banking data" but I doubt anyone is paying £105 per person for that market research.

There's obviously a significant difference between corporate valuation and annual revenue, but they're anticipating significant growth from further monetising the data:

We keep the app free for consumers by generating revenue from insightful market research based on anonymised banking data. This gives our data clients critical insight into how businesses like Deliveroo or Uber are performing. We’re already generating over £970k in annual revenue 2018/19 FY(EBITDA -£958,966), but the more users we attract, the more valuable our data business will become (with a market set to be worth $7bn by 2020).

eskbanker wrote: »

It doesn't really mean that as such, you've just chosen to divide one number by another to give a fairly arbitrary third number!

There's nothing wrong with eliding the words "on average", it's fairly obvious.

If one person's data is worth nothing then somebody else's has to be worth £210 to maintain the average for the purpose of supporting their claimed valuation.

There's obviously a significant difference between corporate valuation and annual revenue, but they're anticipating significant growth from further monetising the data:

Further growth just means they will haemorrhage even larger amounts of money. Unless and until they come up with a way to achieve profitability.

They've been running on venture capital money (and, for last two years, money from punters on CrowdCrap, and now that of their own customers) for almost 10 years and they haven't figured that out yet. Nor does what I've seen of their pitch explain how they're going to achieve it.