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.
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
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.
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!
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?
They would not go into an ISA.
Nothing ever goes in an ISA except cash, or holdings from another ISA.
How about a SIPP?
not as far as im aware. you will need to sell, and re-buy
Shares from company sharesaves can be transferred into an ISA upon maturity.
I Think the best you could hope for is they go into your GIA. I think putting them into ISA would break the ISA rules. There’s no guarantee they would go into the GIA though, you might be forced to sell and take the cash. depends on the circumstances
IPO seems abit of the way off at the moment. I wonder if this round will be the final crowdfunding though, given that profitability seems on the cards.
Thanks for the reponces, so could anyone give me like a little situation of what might happen or what might we do if we have shares on CC and now want to buy shares of FT on the stock market (Just pretend it’s on the stock market)
Thanks
After an IPO if you want to buy more you’d just buy them in the app like any other share. The question is what happens to the ones you already have from crowdcube. I think no one knows for sure. I think shares that are held by freetrade themselves in a nominee account should be able to be transferred into GIA easy enough. Not sure about any that are held in crowdcube nominee (are any freetrade shared held in crowdcube nominee?)
Yeah it would be cool if someone or maybe freetrade told us what will happen woth our shares on CC when and if they IPO.
They will just get transferred to the app and become tradable.
Yeah so definitely the general account then I guess 
In the cooling off period after the payments taken for this round will we get issued new certificates for shares in the last round?
Hi @Freetrade_Team team. No reply yet about the video highlights of the investor evening. Can we get an update when this will be posted.
This question was asked a number of times last week by a few different folks and still no reply.