Can The Crowd Take A Long Term View?

A crowd, waiting, with a clock counting down.

The crowdfunding world has gone Gonzo for Monzo - again. The crowd believes in this bank without branches but are they confident that they're going to see a return on their investment? Or is the bank without branches just filling its coffers with money while it's the Fintech flavour of the month?  they believe the

 City AM told us this morning that 'digital challenger bank Monzo just smashed another crowdfunding record on Crowdcube' which we thought was old news, because we already knew that they had such a long waiting line of people who were willing to give them whatever money they were allowed to invest, that all that was left was for somebody to draw the tickets out of a giant virtual hat.

Which is what they did. Finextra reports that "With nearly five times the £2.5 million the app-only bank was aiming for, Monzo narrowed down the field by holding a random ballot to select the lucky investors.

Crowdcube says deals involving institutional investors, like VCs and banks, raising money alongside the crowd have increased four-fold on its platform in the last two years. "

"As we reported a week ago, Monzo investors have been told there are handcuffs in the small print for Monzo investors.  The bank is quite clear about how big a loss it's making (currently £40 per customer per year) and has told investors their hope of a return on investment is via an IPO, which could be seven years away.

The good news for the Monzo crowd is that the bulk of Monzo's equity funding has come from three venture capital funds. Thrive Capital, Passion Capital and Orange Digital Ventures have put in something like £7.50 for every pound that has come from the crowd. They won't let the bank fold without putting up a fight.