Estimated valuation

The last valuation was £140m what do we think the current value is bearing in mind what an amazing year it’s been on freetrade.
e.g.
-The app has significantly improved.
-User numbers have gone from about 90,000 to 280,000.
-AUM have gone up significantly this year.
-One would imagine ISA subscribers have increased significantly which brings with it more ISA transfers and therefore more AUM.
-And both the SIPPS and PLUS Feature are rolled out bringing more finances to freetrades cashflow.

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I think they could be looking at a 300m+ valuation as long as EU expansion is all on plan.

The multiple revenue streams Freetrade now have is very impressive. The product is becoming very fleshed out. User numbers is pretty impressive as well.

Anyone know if there will be another crowdfund, or when to expect the series B?.

I’d love to see Freetrade do some TV advertising with some of the series B money. It’d really help them increase user numbers in the UK.

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It is expected by the end of December

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I would guess the next raise they will be valued at 500million considering they have increased customers threefold since the last raise and introduced various offerings.

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£260Million if they get a VC raise before year end is my guess

If you’re selling your round 4 shares then it’s 140million and give me a call.

If your buying anyone else’s shares, then I wouldn’t let any of mine go now for less than a billion lol (to clarify, I don’t think that’s the current valuation, but potential in the future).

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I find it so hard to predict the valuation because I know I’m very heavily biased regarding the outcome (invested much more than was sensible for me to at the time…)

Presumably likely to be 250m+ given that we expect DE to put in 50m. Since they already own 15% (I think, do correct me if I’m wrong) I don’t think the founders will be likely to sell them much more than 1/3 in total. If valuation was much lower than 250 then DE’s share would be too large in my view.

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Where did u read that it was DE for series B

I think it was in one of the AMAs, although I could be confusing a plan with an agreement

Presuming the same valuation model as the last 3 raises (2x R5 & R6) I think we can be fairly accurate with an estimate.

280K users - Market Value of £260-270M
300K users - Market Value of £275-285M

It obviously depends on the point at which the valuation is calculated. If the discussions for a Series B have been ongoing for a few weeks, they could be using a data point of 260k users which would give a lower valuation.

(Check the ‘How Many Users’ thread for latest reference to Series B from Adam)

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Freetrade is no longer a pre revenue company so any past valuations mean nothing now. Future valuations will be based on forward revenue and revenue growth not user numbers.

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Freetrade had revenue on previous valuations too.

Nothing significant.

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And where do you draw the line at what is significant and what isn’t?

Look at the valuations of other Fintech’s when they were in Freetrade’s position, user numbers and growth are the primary factors that impact valuation.

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A valuation depends on many factors, not just users numbers.

I reckon a valuation of 144 mil was priced in for where FreeTrade stands at the present moment.

AUM or AUA will have to rise significantly for it to attract a 1 Billion valuation, furthermore it would help if users pump more money into their accounts … is the average still £2K?

The road ahead looks very bright for FT it expands, in my opinion, at the right pace and is indeed focusing on what is necessary right now.

As a side note, I do reckon that if an expansion is Europe proves to be a success, then a 5Billion price tag is very much achievable.

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£5 Billion - I like the sound of that, makes me a multi-millionaire :star_struck:

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Hopefully they won’t make the mistake of monzo where they end up with a down round, and a heap of redundancies, office closures, and worries of their survival.

If they raise at the appropriate valuation, that’s great. I just hope they will have one more crowdfund. If they announce that this is the last one, then nobody can complain about missing out.

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I honestly think a 30 to 50 mil raise at 300 million

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Monzo is very different. Its key problems lies with, that they are end of the day, just another bank, nothing new about them and nothing special about them, hence I will forever bank with one of the high street banks. It’s future is very bleak.

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This :dart:

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