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.