UK Banking startup, Monzo became the latest UK firm to gain the coveted unicorn recognition after raising a £85 million funding round.
1 November 2018 | AtoZMarkets - Monzo, the U.K. challenger bank has announced that it has raised a further £85 million in its latest E funding round led by U.S. enterprise, General Catalyst, and Accel.
Existing investors that participated in the round were, Passion Capital, Goodwater, Thrive Capital, Orange Digital Ventures and Stripe.
Monzo Unicorn Recognition Confirmed
The latest funding was at a pre-money valuation of £1 billion, and that means Monzo is now an exclusive member of the U.K. ‘Unicorn Club,’ and joining recent entrant Revolut earlier this year.
The term unicorn is used in the venture capital industry when referring to any tech startup that reaches a $1 billion market value. The market vlaue is determined by private or public investment.
Meanwhile, the bank will soon announce the launch of a large crowdfunding round later in 2018 in partnership with Crowdcube.
Like a lot of other fintechs, the upcoming crowdfunding round aims to give as many passionate communities and other armchair investors the chance to invest as possible.
The co-founder and CEO of Monzo, Tom Blomfield was quoted as saying:
“We started Monzo because we wanted to make a positive difference to people’s financial lives. It’s incredible that more than one million people are now using Monzo and a testament to all the hard work that’s gone into building the company over the last three-and-a-half years. While we’ve come a long way, we feel we’re still very much at the start of the journey. I’m really excited to be working with two new world-class investors to help bring Monzo to millions more people.”
Monzo Raises £1 Million in 96 seconds
Monzo's previous funding rounds on Crowdcube have seen ground-breaking record for the fastest ever equity raised, generating £1 million in just 96 seconds. The bank has always taken a community-driven approach.
Designers, engineers and product managers have also taken the initiative to ask customers for feedback on the bank’s community forum. Monzo has even requested customers to vote on important decisions, like introducing fees or changing its name.
FSCS Protects Monzo Current Accounts
Monzo was founded back in February 2015 but received its complete banking licence in April 2017. The bank now boasts of having more than one million customers and accounts for 15% of all new bank accounts opened every month in the UK.
So far, customers have spent over £4 billion with their Monzo cards to date. In is also noteworthy, that current accounts are supervised by the Financial Services Compensation Scheme (FSCS). That means up to £85,000 of each customers’ fund is protected.
This latest round of finance will be used to further expand the business and develop even more tools to give customers control of their finances.
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