1. Blog
  2. Investors
  3. Monzo shares rise 25x in value

Monzo shares rise 25x in value

By Crowdcube. 25th Jun 2019


After raising £20 million with us in their third crowdfunding round in 2018, challenger bank Monzo has just closed a new £113 million funding round led by YCombinator (YC) Continuity. This brings Monzo’s post-money valuation to a massive £2 billion. Both new and existing investors have pledged alongside YC Continuity, including Latitude, General Catalyst, Stripe, Passion Capital, Thrive, Goodwater, Accel and Orange Digital Ventures.

The Monzo team plan on using this capital, alongside the finance generated from their raise last year, to power the business’ growth and sustainability, as well as further their plans for a US launch.

With over 2 million customers and more than 200,000 new sign-ups per month, Monzo has asserted itself as the UK’s fastest growing bank. Community has always been key to the company’s growth, with many customers backing their crowdfunding campaigns over the last few years.

Monzo’s crowdfunding history

  • 2016: £1 million raised in 1 minute 36 seconds
  • 2017: £2.3 million raised with the help of over 6,400 investors
  • 2018: £20 million raised in 2 days with the help of 36,000 investors

CEO Tom Blomfield commented on the announcement, saying: “It’s so exciting when amazing investors back our mission to transform banking and make money work for everyone. With more than 2 million customers we’ve come a long way since we started but there’s still a lot more to be done - by listening to our community we’ll keep working hard to deliver the products our customers need to give them better control of their finances.”

So what does this mean for existing investors?

While there are now a larger number of shares, the potential return is greater due to the rise in valuation. Essentially, the investment will have increased in value. In fact, if you invested in the first crowdfunding round in 2016, your shares would have increased in value 25x.

We caught-up with Henrik Wetter-Sanchez, an early investor in Monzo, to get his thoughts on their announcement:

“I actually invested in Monzo back in 2016! I had invested in a dozen startups through Crowdcube before I came across Monzo and it immediately fell into that category of ‘why has nobody done this before’. Camden Town Brewery did the same with craft beer and Tom Blomfield was promising to do the same with banking.”

“I invested because at a macro level, people’s trust and satisfaction with their banks was at an all-time low, creating the perfect foundation for the ideal execution that could arguably only come from a team such as Tom’s, with their GoCardless and Starling experience. People were ready to rethink the way they banked and Monzo re-defined the banking experience for our new generation."

"Today’s news of their latest funding round and new £2bn valuation is incredibly exciting. The reason I was drawn to Crowdcube and have used the platform so much is because I believe in their mission to democratise investing. In this tech gold rush, enabling everyone to share in the success of our best new companies is essential. Not only financial success, which potentially comes ever closer for Monzo’s crowd of investors, but also feeling part of their journey. Seeing the transformation from the vision I invested in 2016, to 2 million people using the app is inspiring.”

Risk warning

Investing in start-ups and early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated. Please click here to read the full Risk Warning.

Crowdcube is authorised and regulated by the Financial Conduct Authority (FCA) and the Comisión Nacional del Mercado de Valores (CNMV). This page has been approved by Crowdcube. Pitches for investment are not offers to the public and investments can only be made by members of crowdcube.com on the basis of information provided in the pitches by the companies concerned. Further restrictions and Crowdcube's limitation of liability are set out in the Investor Terms and Conditions.

Investment opportunities are not offers to the public and investors must be eligible Crowdcube members. Please seek independent advice as required as Crowdcube does not give investment or tax advice.