Wednesday, 8 November 2017

Crowdcube interns do their best to screw up new Monzo investment round


Just as we thought that the Crowdcube interns couldnt get any worse - we have seen evidence that they have (in the words of a Monzo employee) - 

'Crowdcube were incorrectly calculating allocations which should now be fixed — for anyone who receives an invite from now on. For those who already received them, you should receive a correction email. Sorry!'


Reading the string, its clear that shareholders had already worked out that Crowdcube cannot do the math  - and they were right.This shouldnt be a complicated piece of arithmetic for a platform sanctioned by the FCA to do exactly this sort of calculation. But guess it is too complicated for Crowdcube. What a  bunch.

Also in this string on the Monzo site, Monzo intimate that they are about to find a way to sideline Crowdcube and do a Brewdog 'raise your own' in 2018. Cant say I blame them. Dilution for those not taking up their allocation now is suggested at 24.5%. 

6 comments:

  1. Have you got any thoughts about Monzo and their recent funding? Potentially looking like a good investment? Do you think their pre-money valuation of 220 Million is high?

    ReplyDelete
    Replies
    1. good question, i'd like an answer to that too.

      Delete
  2. The valuation is warped. 2016/17 accounts show revenue of £120k and pre-tax losses of £8m. I sincerely doubt Monzo will ever make even a penny in profit.

    Their plan isn't to establish a profitable, sustainable business, their plan is to make lots of noise in order to attracta suitor rich, dumb and desperate enough to buy Monzo at it's inflated valuation. If you strip away the Monzo hype and speculation I'd value the business right now at £0.

    ReplyDelete
  3. Anon above is right on. Word on street is Monzo has turned down acquisition offers that would have given investors decent returns. Instead (IMO) it will hype on-and-on and either return little or nothing. Can't understand the business model here - looks to me like just decent UI/UX and stellar marketing.

    Having said that to bet against Mr Moritz is a brave position to take!

    ReplyDelete
  4. As the world moves towards recognising service above all else, companies like Monzo will have a better chance than most. That's what the VCs are betting on, and rightly so. Monzo would be idiots to sell out at this stage on the terms of a high-street bank who know nothing about service and nothing about innovation. I think this is an opportunity for genuine disruption - of course the dinosaurs want to shut it down as quickly as possible.

    ReplyDelete
  5. Stripe investing is also interesting, I wonder if they will help with Monzo expanding to the US.

    The next year will be an interesting one, hopefully now they can concentrate on rolling out lot's of new features to the current account as it's pretty much built now. From looking at the forums they have some nice things in the pipeline.

    ReplyDelete