App-only bank Mondo raised £1 million on Crowdcube in just 96 seconds
App-only bank Mondo has raised £1 million in just 96 seconds, days after investor demand for the bank crashed crowdfunding website Crowdcube,
Mondo had to "pause" the launch of its crowdfunding campaign on Monday after demand from punters looking to buy shares in the company crashed Crowdcube's platform. Mondo had notified 44,000 people that its campaign was going live.Crowdcube beefed up its technical chops in response and the campaign went live at 12 p.m. Thursday, selling out in record time.Advertisement
1 minute, 36 seconds - the fastest @Crowdcube round ever! Thank you everyone ??- Mondo (@getmondo) March 3, 2016
Crowdcube co-founder Luke Lang tweeted:
Mondo CEO and co-founder Tom Blomfield told Business Insider: "I'd love to thank all the people who invested for such a huge vote of confidence. Thousands of people have helped us shape Mondo over the last year and I'm delighted they now have the chance to own part of it."For anyone disappointed that they missed out, I'm sorry. We tried to make it as fair to everyone as possible. We'd love to include a crowdfunding element in future rounds, so hopefully they get the chance to invest in future."Blomfield confirmed 1,861 people bought equity in the company during the 96 seconds the campaign was open, with an average investment of £542 each. Blomfield says investors have not technically invested yet and will be given the chance to read the legal details over the next few days, reducing or opting out of investing if they chose. Advertisement
Mondo tweeted that those people on the waiting list to invest, picking up any slack left by drop outs, will be notified by email later today where they are on the waiting list. The company's £1 million crowdfunding campaign is part of a £6 million fundraising that values the startup at £30 million.
Mondo offers a pre-paid card tied to a mobile app that helps you monitor you spending and gives you smart data on your finances. The company currently has 1,500 card in circulation as part of a beta trial but is aiming to have up to 100,000 in circulation by the end of the year,founder Tom Blomfield told Business Insider.The company is one of several so-called neobanks - online-only banks. Rivals include Atom Bank, which was valued at £150 million in a £45 million investment by Spanish lender BBVA last year, Starling Bank, which raised £48 million in January, and Tandem Bank, which is in talks to raise a funding round "similar to Atom's," according to founder Ricky Knox. All have yet to launch to the public.Advertisement