Monzo, an emerging heavy-weight in the hot digital banking sector, has shared that 36,006 individuals crowdfunded £20 million in just 2 days, 2 hours and 45 minutes. The offer was hosted on Crowdcube and received intense interest as competition in the UK banking sector heats up as consumers embrace mobile-first banking.
Pre-money valuation of the offer was pegged at £1 billion. The £20 million represented a 2.04% equity stake in the Fintech.
In a blog post, Monzo shared the following statistics from the crowdfunding round:
- £2,038,459 from our existing investors
- £17,961,551 in just 2 hours and 45 minutes today
- £6,881,389 in the first 5 minutes today
- £2,940,760 in 60 seconds during the fastest minute
- 2,457 investors from previous rounds invested again, and we welcomed more than 33,549 brand new investors today!
This past October, Monzo shared it had raised £85 million backed by big name VCs giving the Fintech unicorn status as it topped the billion-dollar mark in valuation. At that time, Monzo management said it would crowdfund once again following in the footsteps of earlier rounds giving smaller investors the chance to back the startup. In 2016, Monzo crowdfunded £1 million in just 96 seconds.
Monzo stated:
“We’re happy that so many of you have been able to get involved and take a stake in the bank that you’re helping us build. Our community has played an essential part in making Monzo what it is today, and your support and feedback are becoming even more crucial as we grow. So thank you to our customers, our loyal investors and our new ones – we’re blown away by your support and so excited about what we’ll do together.”
Luke Lang, co-founder of Crowdcube, said it was truly awesome that Monzo raised £20 million so quickly from its community. He called the round a “significant milestone for equity finance globally.”
“They understand how crowdfunding can help to put customers at the heart of a business by enabling them to become shareholders. Monzo’s raise, which has been powered by Crowdcube, will undoubtedly spark a new era for crowdfunding as bigger brands with large communities want to emulate Monzo and benefit from the backing of their customers,” said Lang.
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