Monzo, the UK challenger bank, raises 3M Series F led by YC Continuity fund at a post-money valuation
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Monzo(https://monzo.com/), the fast-growing U.K.-based challenger bank with more than two million account holders, has raised £113 million ($144m) in additional funding.
Confirming TechCrunch’s scoop(https://techcrunch.com/2019/04/08/monzo-mystery-investor/) in April, the Series F round is led by Y Combinator’s “Continuity” growth fund, and gives the company a new £2 billion ($2.5b) post-money valuation. That’s double the £1 billion valuation it garnered in October last year.
A number of other new and existing investors have also participated in the Series F. They include Latitude, General Catalyst, Stripe, Passion Capital, Thrive, Goodwater, Accel, and Orange Digital Ventures.
The investment by London-based Latitude, the growth fund from prolific seed investor LocalGlobe(https://techcrunch.com/2019/06/12/londons-localglobe-just-closed-on-two-funds-totaling-295-million/), is particularly noteworthy given that LocalGlobe(https://techcrunch.com/2017/06/06/beyond-the-klein-brand/) itself didn’t previously back Monzo. The same might be said of YC’s Continuity, considering that Monzo (https://crunchbase.com/organization/monzo) isn’t a YC alumni (although GoCardless, Monzo co-founder Tom Blomfield’s previous startup, did take part in the Silicon Valley accelerator).
The take-away: a growth fund attached to an early-stage fund can be a great antidote to the anti-portfolio(https://techcrunch.com/2018/10/02/secondary-vc-fumes/) (the list of successful companies a VC firm either missed, were unable or chose not to invest in).
Meanwhile, Monzo’s new funding round and YC’s backing should be viewed within the context of not only