Monzo is one of the most closely watched UK fintech companies — and one of the few challenger banks to have achieved genuine profitability. Founded in 2015 by Tom Blomfield and a team including several former Starling Bank employees, it raised early capital through a combination of institutional investors and crowd rounds, several of which offered EIS eligibility to qualifying investors.
The crowd rounds and EIS
Monzo became notable for its crowd fundraising rounds on Crowdcube, which allowed retail and angel investors to participate in rounds alongside institutional VCs. Several of these rounds were structured to qualify for EIS, giving participating investors income tax relief and CGT exemption on eventual gains. The rounds were often oversubscribed within hours — demonstrating the strength of Monzo's brand and the appetite for its investment proposition.
Valuation trajectory
Monzo's valuation has risen substantially since its early rounds. After a period in which the pandemic and regulatory challenges weighed on the company, it returned to strong growth. By 2024 the company was valued at approximately $5 billion and had achieved profitability — a milestone that many challenger banks had struggled to reach.
The investor experience
Early EIS investors in Monzo who participated in crowd rounds have seen significant paper gains. The challenge, as with many successful private companies, is liquidity. Secondary trading in Monzo shares is limited, and the path to full liquidity depends on an IPO or acquisition that the company has not yet pursued. Early investors hold a valuable asset — but one they cannot easily convert into cash.
The EIS income tax relief claimed at entry continues to provide a cushion: investors' effective entry cost was 30% lower than the nominal investment, meaning the valuation at which they break even (before EIS reliefs) is lower than it appears.
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