CrowdCube Fundraise


(Stephen iles) #1

I saw an invite from CC to say that you are pitching on Tuesday 1st May but cannot find you listed on their site. Why is this ?
Why are there no “pitch papers” on here for potential investors ? Can you put some up ?

Tx


How and when will I get my shares?
What we know about the the latest crowdfunding round so far (FAQs) (Open Wiki) :clipboard:
Crowdcube taking funds too early
(Viktor) #2

Yes, we’re crowdfunding soon! :rocket:

The pitch and all the details will be up on Crowdcube when we start the campaign in a few weeks.

For community members, we’ll have an early private phase to make sure that people like yourself don’t miss out!

The announcement from our newsletter:

Please make sure you drop your email here, so we can send you the private link when the round opens -> https://freetrade.io/

A few of our team members will be around at the pitch event. Just come over and say hi when you spot a Freetrade t-shirt.

(For anyone not on Crowdcube’s newsletter and interested in the pitch event, here’s the Eventbrite link.)


(Stephen iles) #3

Many thanks. I’m not sure that allowing trading of Cryptos at the start is a good idea from a “reputation” point of view. I reckon it will make you look like spivvy, jump on the bandwagon boys. Still, I’ll wait for the pitch on Tuesday in London.
Can you tell us how similar / different you are to the US Robin Hood group please ?


(Viktor) #4

We’ve been building a full stack, new generation stokbroker with strong fundamentals:

  • We are authorised by the Financial Conduct Authority, so we have the same stockbroker permissions as the incumbents.
  • We have become a member firm of the London Stock Exchange.
  • Our pricing model aligns with our customers, so we only succeed when they succeed.

So, I personally don’t see a reputational risk from introducing the asset class. On the contrary, a lot of the current platforms are unregulated and miss fundamentals, so it’s difficult for investors to know whom to trust. As a result, there is a lot of value in legitimate, regulated companies entering the space.

Also, this asset class created a new entry point for young investors, who are exploring further asset classes e.g. stocks.

But cryptocurrencies won’t come “at the start”. They are further down the roadmap.

We are very similar and comparable in many ways, but we are a UK-regulated company that understands and will provide what’s important here (ISA, SIPP). Our goal is to expand into Europe, so we’ll reach a similar market size as the US, but non-local companies would have challenges with this complicated market. We also consider our economic model to be aligned with the success of our customers. Last but not least, you don’t have to be an institutional investor to invest in Freetrade - crowdfunding is core to who we are! :muscle:


(Stephen iles) #5

Excellent.
Where do you profits come from ? Robin Hood takes the interest from investors deposits. How are you aligned to investors ? You don’t profit from their investments. I think it is really good NOT to encourage excessive trading.


(Vladislav Kozub) #6

As the CEO said, Freetrade will not lend its customers’ deposits and gain interest like Robinhood.

Hence most of the revenue is assumed to come from ISAs / SIPPs and Alpha subscription.

According to Viktor’s estimate, Freetrade envisages 100,000 customers by the end of the year. Even if half of them will be recurring Alpha subscribers, that is £8.33 of revenue per head post-VAT (£6.94 pm if annual) + £2.5 for ISA for non-Alpha post-VAT. Very roughly half a million per month, which may cover overheads and allow continuous growth at a fast pace.

There still seems to be plenty of room for additional features if income stream will not be sufficient with Alpha only.


#7

This sounds much better to me :face_with_monocle:

Cryptos done properly with full transparency is surely a good thing. The major mainstream hype cycle of late 2017 is over and now the space can grow (or decline) organically as new regulations & institutions get involved over time.

Revolut just announced this week (the same week they announced Unicorn status) that they’re to add Bitcoin Cash & XRP to their crypto offering… this news was well received.
Binance went from nothing to the world’s largest cryptocurrency exchange on some metrics in less than 1 year… with a great reputation in the space.
All kinds of major players are flirting with Cryptos including Goldman Sachs and Nasdaq.

I see no reason why cryptos on the Freetrade platform shouldn’t be an option. Whether it remains a niche in finance remains to be seen but it has a place in the world nonetheless imho.


(Kenny Grant) #8

Can I be added to the newsletter, I am on the app waiting list but heard nothing about crowdcube.


(Christopher) #9

Ditto @Kenny, and the pitch event is at capacity!

@Viktor, let us know what we need to do to be added to that list! :grinning:


(Viktor) #10

Can you DM me your email you are on the waitlist with? If you are on it, you should get the updates. :thinking: Unless you unsubscribed! :wink: But maybe there is something else going on.

In any case, we will share the updates from the newsletter on this forum as well in the future.


(Viktor) #11

You mean the list of attendees to the Crowdcube pitch event at Balderton? We’ve asked Crowdcube if they can give us a few extra spaces for Freetrade community members, but it sounds like the venue is at capacity.

If you mean you haven’t received the news about our upcoming crowdfunding:

  • Make sure you ‘request invite’ on Freetrade.io
  • If you had done that before, DM me your email as you should have received our email updates (which is how we’ve been sharing news with our community before this forum).

We’ll email the private link to the Crowdcube pitch to everyone on the waitlist when the round opens. :fire:


(Chris) #12

Just to clarify, this is the email from two weeks ago that’s being referred to here isn’t it?


(Viktor) #14

Yesterday we were in Crowdcube’s newsletter which @stepheniles received. The email was about the Crowdcube Pitch Event we’ll participate in at the offices of Balderton Capital tomorrow at 6:30pm.

The tickets were snapped up fast, but we’ve asked Crowdcube if they can give us a few extra tickets for community members. :muscle:


(Viktor) #15

Just heard back from Crowdcube! They’ll give us a few extra tickets, so message me your name and email until 6pm if you want to come to the pitch event tomorrow. :email:


(Tommy Lowe) #16

Cat is out the bag… @adam just delivered the pitch for the next round


What we know about the the latest crowdfunding round so far (FAQs) (Open Wiki) :clipboard:
(Rob Nicholson) #17

Big news! This round is going to be popular!


#18

What was the pre-money valuation of the prior crowdfunding round?


(Vladislav Kozub) #19

@adam, Any chance the full presentation could be posted on the forum prior to Crowdcube? Would be great to see further details unless there is a predetermined exclusivity for Crowdcube


(Tommy Lowe) #20

£4 million


What we know about the the latest crowdfunding round so far (FAQs) (Open Wiki) :clipboard:
(Adam) #21

The pitch was elevator-style, you’ll get more from our Crowdcube film. You’ll also get much more info in the investor deck once we go live on CC.