Digital challenger bank Monzo just smashed another crowdfunding record on Crowdcube

Lynsey Barber
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Monzo's crowdfunding has once again proven popular (Source: Monzo)

Digital challenger bank Monzo has smashed another record, attracting more than 6,000 investors to its crowdfunding campaign, more than any other campaign in Crowdcube's history.

They ploughed more than £2.5m into the fintech startup as part of a larger fundraising round, bringing the total to £22m, valuing Monzo at £65m.

The challenger bank was forced to run a ballot for the crowdfunding in order to give everyone the opportunity to enter. A similar campaign last year broke th record for the fastest ever crowdfunding on the platform, reaching £1m in 96 seconds. However, many wannabe investors missed out as a result of such huge demand and the bank decided to make it fairer with the ballot system.

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All in, more than 41,000 people pledged over £12m to the bank before that number was whittled down. The amount anyone can raise via crowdfunding without a financial prospectus is capped at €5m.

Monzo founder and chief executive Tom Bomfield said he was "delighted" with the result.

"Our aim was to engage our community with this crowdfunding fund, so to have attracted the most investors ever on Crowdcube is amazing and demonstrates the power and support of the crowd."

Crowdcube co-founder Luke Lang said: “The enormous demand from investors to back Monzo is another example of the huge appetite to invest in pioneering fintech businesses that are transforming a market and meeting the needs of the millennial generation."

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Monzo raised cash from venture capital investors last month. New York's Thrive Capital, a backer of Instagram, Twitch and Spotify and Orange Digital Ventures, the venture arm of the French telco, invested £19.5m along with existing investor Eileen Burbidge of Passion Capital.

The fresh cash will go towards fulfilling its capital requirements for becoming a full bank. It gained a banking license last summer and plans to roll out its first product, a current account, are underway.

Blomfield told City A.M. then that it plans to double its current staff of 85 over the next year and has just moved to larger offices as it expands.

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