Did Freetrade mention why they’re crowdfunding?
Why are they only raising £1M for a company their size? Wouldn’t they be raising more?
They need the money to survive and expand.
Their not, they’re at £1.75 million at the moment. I’m sure they are aiming for as much as possible. Its a tough market at the moment. Its highly unlikey they will reach the lofty heights of previous early rounds.
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The target of 1M is just an indicative number ( in marketing terms, it is better to say that your campain was overfundend). However, from their pitch deck they mentioned that their “real” target for the base case scenario is 2.5M (vs 7M for the growth scenario).
The money raised will be used as an extra push towards growth and profitability. However, they stated that all the money they raise comes as an extra because they will be able to turn profitable indipendently from the founding campain.
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Hey @Coolsmp
On your first point it’s important to emphasise that this is not the case. Our first update on the pitch gives some more detail, but we don’t need to raise further money to reach profitability.
May’23 closed with us achieving (0.4m) EBITDA and our corporate cash sat at £20.8m.
The raise is to provide additional support for ramping up growth and developing new features.
@FRusso - those base and growth fundraise targets are for the entire calendar year '23. For context, we raised £5m from existing investors in January of this year. So £2m in the Crowdfunding would satisfy the base case we projected for '23 at least.
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Can I please ask, when will it be “fully funded”?
Sorry if that’s a dumb question or answered elsewhere.
Fair point, I’ve struck through my original wording.
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Whoops yes you’re right. I based my answer off the comments above! Have changed.
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I have a question regarding the CLN. It was mentioned that some investors would get some preferred shares(limited number available). How is that distribution being made? Is it by investing order or all the crowdfunding Investors will be granted with the preferred shares? Are these preferred shares Series B shares with voting options?
It was one off the reasons why I invested in the CLN.
I’m pretty sure if you invested in the last CC CLN you won’t get preference shares.
This was in the CLN:
"Investors in the first loan note will receive Series B preference shares (or Series C preference shares if they convert as a result of a Series C funding round).
Investors in the second note will receive Series A preference shares."
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Another 50k and Freetrade will reach £2 million for this round, 8 days left.
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Get your tickets!
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This will only help Freetrade.
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That headline is misleading though, PFOF != Broker Commission
Seems they’ve just hit 2 million
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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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