Yeah thatâs definitely not right the share price of the round is the share price. Think youâre getting mixed up. Iâm not in the market to buy or sell but think youâd be incredibly lucky to sell above the latest share price give you cannot offer EIS.
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The round was over-funded. Thatâs why I posted the amount raised (this is relevant), and the number of investors. The pre-money valuation remains the same but the post-money valuation increases with each new investment.
Generally, they would not be the same if the round was overfunded however, for a more official answer, maybe someone from Freetrade or Crowdcube could explain how it works.
Now whether one is willing to sell/buy at that price, is another question entirely - purely based on demand and supply at any given time.
In any case, Iâm not in a rush to sell so thatâs my range at the moment 
You are well within your rights to ask however much you want, and I think itâs probably fair to say they are worth more than a quid now. but there isnât an automatic increase after the funding round. The valuation goes up because there are more shares, not because the shares themselves are worth more
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I see, I didnât realise it was an equity dilution. Anyway, I donât pretend to know everything 
Since youâre a founding member, youâve likely spent more time looking into it than I have.
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Post valuation would still be ~95p - more shares were issued for that new 4m. The other difficulty you have is that any purchaser of your shares wonât get the EIS tax benefits, so you may find prospective purchasers looking for a discount to the last roundâs price if Freetrade has any EIS outstanding for future rounds. On the other hand, if the next round ends up being not crowdequity (ie VCs only), then buying from you becomes one of the few ways to get FT stock, so maybe higher value. Who knows. So the price is whatever you and a buyer are able to agree⊠Good luck! 
@Toms makes a good point about EIS, Most UK investors in the round can claim 30% back, so in reality once theyâve claimed that back they only paid 60 odd pence. But you canât pass the EIS on to another buyer. In fact you might have to pay any EIS you claimed back if you donât keep them for 3 years? not sure on that?
Pre-money and post-money the share price would remain the same. The valuation of the company would rise. Simply raising capital will not change the share price, because more shares have been issued.
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Yes you do. You have to pay the 30% back if you sell within 3 years. Not an ideal situation for a buyer or a seller!
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Thanks guys. Useful info
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EIS should no longer factor, if you missed the round you missed the EIS benefit. Itâs an open market now. You canât ask for a retrospective discount because the price used to be cheaper and had tax breaks. Well you can ask âŠ
I believe the share price was growing about 6.5% a month between the two rounds this year, so over the last 3-4 months I would expect an increase of at least 20% assuming that has continued.
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I can see where you are coming from. But the investment takes on a completely different risk profile without EIS. So whilst the notional value might be increasing - I would be surprised if anyone paid the increase you are suggesting. You are also ignoring the liquidity premium. These shares are not liquid and thus warrant a private market discount. Ultimately the share price is what a buyer and seller agree on, but fundamentally I wouldnât expect it to be above the most recent share price for these 2 reasons.
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Hi Freetrade Community Members,
I am looking to buy some shares from previous round investors.
Quantity: 500-1k shares
If youâre in a position to sell, kindly DM me and Iâd be happy to pick the conversation.
Cheers!
FYI According to Adam:
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Yes thatâs very true. Although, if I remember correctly, there was a post indicating that around 20% of Freetrade investors are based overseas in Europe and hence havenât invested via EIS
For me I bought of a previous round investor. Never the less in Ireland EIS doesnât cover financial services. So bye bye fintech 
Unless the seller has held the shares for over 3 years then there is no EIS, the seller will have to pay back the tax relief.
I got over 9k shares and I was offered ÂŁ5k.
Could get more per share but shares canât be sold in parts without involving board.
Itâs hard to say what the current value is, for me all the prices are finger in the air estimates.
I have 1661 shares to sell PM if interested.
Are you still looking to buy shares?
Iâm looking to sell some shares if anyone was interested at around the price of the last raise. Iâve got about 50,000, would want to sell in reasonable amounts to avoid loads of paperwork.
If the Freetrade raise is like Monzoâs you might have to sell them all together!?!
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