The market is just starting to recover from COVID-19’s impact. While many expected that funding rounds would be far and few, we reported that the VCs are as eager as ever to invest in promising companies. The latest example of this is the UK challenger bank Monzo, which has announced raising €66.8M in the latest bridge funding round. Even though fresh funds are good news for the company, not everything is rosy.
New bridge funding but share pricing remains the same
The latest funding round was backed by Monzo’s existing investors Y Combinator, General Catalyst, Accel, Stripe, Goodwater, Orange, Thrive and Passion Capital. Some new investors such as Reference Capital and Vanderbilt University participated as well. While raising fresh funds is good news for the bank, the share pricing for people who invested in the company back in 2018 hasn’t changed.