Freetrade crowdfunding FAQs (5th round) ❔

We’re launching our 5th crowdfunding round at the end of the month :tada: check out this wiki for answers to FAQs & if you have any questions, ask them here: Freetrade's crowdfunding on 25th June at 11am 🎈

Investing


When will I be able to invest?

Crowdfunding will start at 12pm UK time via Crowdcube. Freetrade customers and existing investors will have early access to invest from 8am, until the page is made public until 12. This early access will be given to customers in batches, there’s more details about how this will work here.

Sign up to Freetrade to get early access here.


Will I receive EIS?

HRMC rules allow for £5m in EIS per 12 months, and we raised £2m in April, so only the first c. £3m would be potentially eligible for EIS relief.

The EIS forms are administered by Crowdcube for us, so it will be allocated on a first-come-first-served basis.


What's Freetrade's new valuation?

The valuation for the round will be £43m.


What's the most Freetrade will raise in this round (including overfunding)?

We are limited by crowdfunding rules to raise a maximum of c. £5 million this time.


Do I need to pay for the investment straight away?

No! You only pledge the amount that you want to invest and then you have a ‘cooling off period’ :snowflake: of at least 7 days before you have to pay for your shares. The earliest you’ll have to pay for your shares is Tuesday, 2nd July.


Benefits for investors


What rewards will investors receive?

What share types are on offer?

We’ll only be issuing B Investment shares.


Using Crowdcube


How do I invest via Crowdcube?

We wrote a guide to help you set up an account. :blush:


Will the 1.5% Crowdcube fee apply in this fundraise?

Yes, Crowdcube charges a 1.5% fee on investments. The fee is a minimum of 50p & a maximum of £250. It’s added to the sum that you invest, rather than being deducted from your investment. There’s more details here.


Are existing shareholders exercising their pre-emption rights exempt from the 1.5% fee?

No.


Who can invest?

Everyone who’s over 18 and a Crowdcube user can invest. There’s just a few countries do not allow their residents to crowdfund. Check out Crowdcube’s official guidelines here.


What's the minimum amount I can invest?

You can invest £10 or more.


What's the maximum amount I can invest?

You can invest up to £5,000 during the early access period. There’s no limit to how much you can invest once the round is public.


Can I invest if I'm abroad?

Yes, as long as you as an individual meet the Crowdcube guidelines.


Can investors share the head start link with friends & family?

Yes, customers who receive a head start (private mode) link can share it with others. But we’ll ask users not to share it in the community forum.


Info about Freetrade’s plans


When will the pitch deck be available?

We’ll share the pitch deck on the Crowdcube pitch page.


Where can I ask the team my questions?

You can ask the team your questions about Freetrade’s business on the Crowdcube forum. Ask your questions about how we’ll run the crowdfunding round: Very important update on Tue 25th June Crowdfunding


How will Freetrade use the funds raised?

We’re raising in order to:

  • Grow our engineering team and ship cool features faster
  • Invest in customer growth, especially with incentivised referrals
  • Expand to Europe in the later part of the year

Is this a Series A?

No, this is not an institutional funding round with any preference shares. All the shares issued will rank the same economically as all our existing shares.


Will there be more fundraising via crowdfunding / VCs in the future?

TBC


What’s the price per share?


When does the cooling off period start?