The bank’s customers will be able to invest through the Monzo app.
This time the bank will seek up to £20m from the crowd in what it calls the largest crowdfunding offer by any fintech firm or challenger bank to date. Indeed, the planned round is so large that Monzo will have to issue a prospectus for potential investors.
Investors can buy shares in the company through the Monzo app, with Crowdcube providing support by managing the distribution and registration of beneficial ownership statements, as well as by managing ongoing investors relations through a nominee structure.
Existing backers will be able to invest from 10am on the morning of December 3rd, before the round opens to the wider public on December 5th. Unless fully funded sooner, the round will close at 10am on December 12th. Investors will be able to invest a maximum of £2,000 in the company.
The UK’s equity crowdfunding platforms have been prolific at getting companies funded, but have so far struggled to produce much in the way of exits for their investors. A lot of hope is being pinned on digital banks Monzo and Revolut, both of which have raised money via crowdfunding (Revolut on Seedrs, after switching from Crowdcube) and both of which are now ranked as ‘unicorns’ – privately held tech start-ups with valuations north of a billion dollars.
Tom Blomfield, Monzo’s co-founder and CEO, said in a statement: “We’re so grateful for our amazing customers because they’ve helped us to build Monzo into what it is today. We couldn’t have done it without them. There’s lots more to do and we’re excited to be able to give them another chance to join us on the journey. We’ve loved working with Crowdcube yet again to make it possible for our customers to become investors.”
Monzo has had an extremely busy few weeks of news. Only last week the company established, for the first time, a presence on the high street through a partnership with PayPoint, as well as announcing that it plans to launch business accounts.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.