Iām interested, message me if you would like to.
Given FT has just hit 100k users and that EU expansion is slowly getting startedā¦Iād price the shares at around Ā£2 personally.
How do you get to that valuation?
Nothing too clever, just a comparison of user numbers and market value against other fintechs.
Which fintechs?
Monzo and Robinhood, but you could also look at Revolut.
Sure but they arenāt very similar business models so arenāt that comparable.
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Robinhood isnāt similar?
Not really. Similar concept but different ways of generating cash.
Fair enough, Iād argue that has little impact on valuations at this stage.
Ā£2 would be my price regardless, could be tempted into selling 5-10k shares.
I think you need to do a bit more reading around valuation techniques to unpack that. Business reach and cash flow generation methods have a huge impact on valuations.
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Business reach of course has an impact, but I donāt think cash flow has that much impact in tech startups(initially). Agree to disagree.
Enlighten me, whatās your price?
No sorry what I meant is how a business generates revenue is fundamental to valuation. As Robinhood has a different business model to Freetrade it is not a great comparison.
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Thereās also a danger of valuations being driven by comparisons. Especially when those comps include āin fashionā FinTechsā¦ in one of the longest bull markets we have ever seen.
In my view itās the unit economics and scalability that are key in justifying high forward revenue / user multiples.
Personally until FT demonstrates any promising metrics here I wouldnāt be putting any more cash in at a higher valuation.
How many of these 100,000 users generate any revenueā¦? Not a dig at FT, same applies to Monzo/Robinhood.
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Hi Sergi,
Welcome to the forum. I thought the last valuation put the shares at 0.956Ā£. Did I miss something here ?
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The share price at the last round was ~Ā£0.96, I think the Ā£1.04 figure was based on a misunderstanding of how dilution works.
Having said that, significant progress has been made and you are within your rights to ask whatever you want for them
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@sergi Also, the recent community price discovery was 101.76 I believe. But as Dave said, your sell price is up to you
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Yes. 17th Jan above. Note - only a survey rather than a transaction but also non EIS. Assuming there are occasional actual transactions I havenāt seen then posted anywhere
Hi, Iāve just joined the freetrade community and was wondering if anyone knows if there is another funding round planned for the future? Thanks
Yep, weāll open another round later this year. The timing has been decided but you are sure to see it here first.
Welcome to the community!
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