One thing that I would really like to know is the investment of Freetrade to automate processes. Considering that you need to grow at scale, I am worried to know that things like dividend payments are increasing delivery times due to lack of staff. For the survival of any company, investment in automation is the key to grow at scale.
I’d really like to see some more detail on the cash burn scenarios.
Given you mentioned raising £6-7m at the community meet and we are at c. £2m, what are your options to extend runway? How much of these funds are to meet regulatory capital requirements vs burn?
Also what have you modelled in terms of trading volumes? As we are soon to enter a global recession, we can expect a drop in retail trading volumes as individuals withdraw money in the face of a large cost of living crisis.
As an investor my concern is that FT is running out of time and is looking to raise a Series C within 12 months during a financial crisis. Shouldn’t we be taking drastic action (dare I say it halving headcount) to increase runway to 24 months+. Survival is absolutely key and it feels too uncertain atm to make this investment attractive.
Numbers on the business opportunity in Sweden. Market sizing, feedback from first clients, competition
This is the first country in Europe where FT is launching and we got no data on Sweden in the pitch deck which feels bizarre. The numbers in the forecasts are “non-UK” which makes it hard to look at Sweden as a standalone opportunity.
I am not sure it’s a topic for crowdcube but would be great to hear your view on how has the execution of the roadmap improved at FT. This is something that FT has struggled with historically, sorry If its sounds offensive to a founder, don’t mean any harm. FT has stopped sharing the public roadmap at some point. The one in the pitch deck looks promising, but why should we believe it will be executed this time?
For reference the last pitch deck’s roadmap (2021) included these points (with my comments):
Crypto (testing on demo accounts, pending regulator approval >> no expected release date provided (“later” in the pitch deck)
Autopilot (recurrent orders beta released → looks that there is still a long road ahead of full release)
Freetrade Web (no buy/sell, very limited functionality beta released >> no expected release date provided)
SL (the comms are unclear on this one, status unknown>> no expected release date (“later” in the pitch deck))
UK and EU fractionals (status unknown, “next” in the pitch deck)
Freetrade Cloud API (status unknown, not part of the pitch deck anymore)
Personally I was a bit offended by your laughing during the Zoom conference saying that FT has build Transferwise internally when nothing on the roadmap promised 9 months ago is fully complete.
The numbers provided in the pitch deck and some back of the envelope calculations provide rough idea on the number of funded accounts with less than <50 gbp in the account
Is there a clear strategy to attract high net worth individuals to the platform?
I got the new branding message - “home screen app for your investments”
Which audience will be FT targeting when the roadmap gets implemented?
beer/pocket money investors
new investors who are just starting out with small portfolios
hnwi (where is the increased trade size on the roadmap?)
meme stock crowd
people with SIPPs hold with old brokers (where is SIPP employer contribution?)
I am completely lost on FT’s market positioning and I am feeling that the platform is trying to cater to everyone at the same time. As an investor would prefer to see a clear path to getting more high net worth accounts on the platform.
Assuming Freetrade want long term investors and SIPP being a great way of getting said long term customers, are there any plans for draw down options that will be revolutionary as was hinted at in the past?
This really could be a winner for getting long held accounts.
I would be interested in how Freetrade decide to prioritise what areas for development.
In addition, when you plan to start issuing annual dividend statements (via the app).
While such simple features may not bring in direct revenue, it might reduce costs by reducing the number of customer queries.
In addition, it would help your customer growth - I know of several individuals including members of my family who decided not to use Freetrade due to the lack of such basic functionally and poor customer experience.
Could you compare your platform approach versus an overhead and people light model using other brokers API’s? (As shown in slide 35 of the pitch deck). What are the economic advantages/disadvantages between these approaches in the near/long term? The near term suddenly being more important.
Do the economics continue to makes sense? And at what scale?
In 2019 Freetrade was charging customers 45bps or so for FX, this was an expense paid 100% to a market maker. This switched to Revenue as Freetrade started using an FX Partner, now FT’s taking a greater share having connected directly to markets.
Does this now pave the way for a tiered FX fee for Plus/Standard customers? (Post a capital injection). And later down the line for Multi-Currency Accounts? (For GIA accounts, as ISA’s must be in GBP).
There has been a lot of talk on development and items which are ready for release but constrained due to regulation or other factors.
Specifically crypto, which you had explained is ready to ship. Can we have a product demo and get a feel of what it will look like and how it would operate?
I am expecting it to be more of a custodian service than a full outright wallet - what are the range of crypto assets that will be included? Will it be a standalone or fully integrated product? Visually, will be part of the GIA if integrated?
Whether it’s this daily posts plan or swag delays during Crowdfunding or the useless £10,000 NFT from Round 7… or new features/additional stocks.
We get it. You guys are very busy (or understaffed) so please just stick to the things you can deliver and concentrate on the day-to-day of continuing to make Freetrade the best share trading platform in the UK!
edit…3 days later I’ve read this back and it really wasn’t meant to sound mean spirited! I love Freetrade - I’d never have got into investing and saving if it wasn’t for Freetrade. You guys are great when you’re getting it right but please don’t be so over eager to please us all at the expense of your normal workloads and sanity! Keep up the great work in general - Freetrade is the best out there!