As part of the funding, the bank has agreed a £19.5m investment round with Thrive Capital, Passion Capital and Orange Digital Ventures.
The remaining £2.5m has been reserved for a crowdfunding round in March, one year after Monzo raised £1m in just 96 seconds via Crowdcube.
In a blog post, the bank said: “There was so much demand last year that many people missed out, so we’ve taken extra steps this time to ensure as many people as possible have a fair chance to invest.
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“We’ve been determined to do another crowdfunding round and so, as part of this raise, we’ve reserved a further £2.5m for our community, who can invest at the same valuation as Thrive, Passion and Orange and take the total raise to £22m.”
From 28th February, Monzo will begin a two-week pre-registration period for potential investors to pledge an amount starting from £10.
The bank has capped investment at £1,000 to give more people the opportunity to take part.
In the event that £2.5m is pledged, Monzo will hold a ballot from midday on 14th March to randomly select winners and invite them to complete their investment.
In November, Monzo revealed it had made a loss of £1.4m in its first year of trading.
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