Crowdfunding 2023 - 🎈

What does that mean? Double the capital raised, or do people only get half what they asked for?

It means they will take double the amount they had originally set the goal for.

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I think Adam said in the AMA Freetrade were hoping for £2m to £2.5m. The million target is just a Crowdcube marketing gimmick

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Assuming a few pull out during the cooling down period, it looks like FT will have a clean £2M in the bag

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The £2M raise value was a psychological number for me where I’d have pulled my investment in this round if it didn’t break that, so happy to see it heading clear

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Join us on the webinar, starting at 7pm AMA community meetup - Crowdfunding 2023 - #8 by omarft

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Just to confirm that in today’s AMA it was confirmed that all the shares from the CLN round will be converted as Series B preference shares.
Good news for CLN investors!

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@acamp Is there a recording for the community meetup last evening for those who couldn’t attend in person? It will be great if that can be shared. Thanks in advance.

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May I ask, what’s the significance of it being Series B preference shares

As I understand it, preference shares are first in line for any administration distributions. If FT failed and they had £5M left in the bank for example, preference shareholders would be made whole first.

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‘Series B’ shares also have voting rights, whereas ‘B Investment’ shares do not.

After the debt financing has been repaid.

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I am looking at FT as an investment for the future to “potentially” make money from - much like any investment - however, I am concerned about the Dilution of the share price from other investors.

Can someone please explain this and how investing now is a good thing? rather than doing it to help the company survive and be profitable.

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You will always get dilution when you invest in a company that is still raising money from outside investors, whether this is crowdfunding, VC or whatever.

In theory it shouldn’t have a direct effect on the share price as the company valuation goes up by the amount invested, so you have a smaller percent of a bigger company.

You need to make decision whether you think the share price will be much higher in the future regardless of any dilution. Personally I think there’s a decent chance FT will be worth much more when it becomes profitable and hopefully investor sentiment improves. However I’m not investing this round because I already have quite a lot of Freetrade shares from previous rounds

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I don’t really understand the concern about dilution at the lower end of crowdfunding investment which is where I sit.
Surely it would be more of an issue for institutional investors with significant ownership percentages who wish to maintain control and influence.
I’m buying ‘B investment’ shares that have no voting rights.

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Hi @omarft. Any update when the community meet up highlights will be posted?

Congratulations on a good raise Freetrade! Just over £2.45M should satisfy the base case scenario and provide a nice buffer to hit profitability in Q1 2024.

Hopefully that was the last crowdfunding!

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I have a question. Say I have shares in freetrade when and if FT has its IPO and I had an isa etc would the shares automatically go into the isa or general account or what’s the deal with the shares on crowd cube?

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They would not go into an ISA.

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Nothing ever goes in an ISA except cash, or holdings from another ISA.

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