Agreed, the sp at that time reflected market sentiment and overall trend for sector peers.
I remember Adam saying they had reviewed the trend lines of their peers and adjusted Freetrade valuation in line with that. I donât recall him saying the SP has dropped because we are doing poorly.
If anything this latest release should be adding considerable confidence to potential investors/buyers etc. and in my own opinion should reflect a more confident share price of the suggested ÂŁ4-5.
Back when they offered an exit at ÂŁ3.70 no way was Freetrade in as strong as a position then as they are now - so if they want to offer me that exit again I am happy to explore that option. I like the product (I invested) but Iâm getting on now and really want to focus on a new career before I get too old and an exit would make that possible.
I can see both sides, on the one hand looking at the numbers. They barely scraped a profit and if itâs below the base case then there isnât much justification for a large increase.
On the other hand share prices arenât just about current numbers, they are driven by sentiment, and seeing an actual profit is worth more IMO than a base case prediction from a couple of years ago
The sentiment was clearly overly positive/optimistic or we wouldnât see a surprise to the downside. The price is inherently forward looking.
Quelle suprise, but itâs black and white in the previous projections. Not to entirely dismiss macro as a factor, but discount rates are similar and non-crypto peers are ~flat.
I agree and I expect many others would as well, but thatâs the reason I think a big increase is pretty unlikely at this stage.
I would love to see more details about the Sweden part of the business compared to the UK and some expectations on a possible European expansion. I know that FT were not in a position of doing it before, but now, with stocks trading in ⏠and larger number of European stocks, I can see a good adoption with a Minimum Viable Product for EU.
Large scale with lower effort. Lunch in a couple of other large counties such as France, Germany maybe SpainâŠ
I suspect the Swedish element would be very small and negligible compared to the UK side. This is just me surmising, of course but open to others thoughts here.
I read the update eagerly and am pleased with the progress the team have made to ebitda profitability.
I do think a minimum viable product could raise a decent chuck of AUM and fees without too many hurdles but clearly there are other issues to not launching in Europe more than just Sweden.
Would be great to hear from freetrade on the EU expansion side given the pitch decks for last few years have had EU expansion as targets for the money that weâve collectively put in each raise.
This is an insightful article into the Swedish opportunity and gives some excellent indicators that hint at why FT ended up there. Hopefully it goes well.
Some quote and key photos below:
âAt a time when the UK and many other European countries are struggling to attract initial public offerings and suffering from falling trading volumes, Sweden stands out for having, relative to its size, thriving capital markets that are backed by legions of investors and which are even tempting foreign companies to list. âSweden now has the deepest capital markets in Europe,â said William Wright, co-founder of markets think-tank New Financial. âWhat theyâve realised is you do need this ecosystem and you need to encourage it at every step of the way.ââ
âA key driver has been the countryâs investment culture, which Carnegieâs Elofsson says has attracted âeveryone from the man on the street to very engaged private banking investors, entrepreneurs, but also the small and mid-cap investment communityâ, referring to institutional investors.â
âRetail investors are also big buyers of Swedish stocks, helped by a wealth of reforms in recent decades. Compared with the rest of Europe, Swedish households hold among the highest proportion of their investments in listed companies and among the lowest in bank deposit holdings, while financial literacy is greater than in Germany, France or Spain. In 1984, the government introduced Allemansspar, a product enabling ordinary Swedes to invest in stock markets. By 1990 there were already 1.7mn of these accounts, helping drive the launch of domestically focused small and mid-cap funds.â
Sweden was the biggest mistake the company has made and is partly responsible for them burning through the ÂŁ35M Series B money.
Ireland back in 2019 was the correct choice and many of us pointed it out to them at the time.
A regulatory period that took over 1.5 years, small addressable market, notoriously tricky to break into (they only just launched Bank ID which we are told is crucial), very slow user growth, expensive local work force, their own currency, their own languageâŠ
@acamp do you think a split between UK and EU/Sweden could be included in future reports. Would be nice to see performance split on geographical location/market?
Another interesting article on fintech valuations over the last year:
âMany individual fintech businesses, such as crypto platform Coinbase and online stockbroker Robinhood (which has just launched in the UK), have seen big share price increases â up 67 and 53 per cent respectively in the year to date. Across the spectrum of listed fintech businesses globally, thereâs been an impressive bounce over the past 12 months.â
âOne repercussion is that we may see more fintechs list on stock markets over the next year.â
Cem Sertoglu, managing partner of Earlybird Digital East Fund, of the startupâs early investors said, âHaving timed the explosion in demand in the Turkish investment market perfectly as the first digital-native investment platform, Midas has been executing flawlessly. Winning the domestic market in the worldâs 11th-largest economy will already be a success for Midas, but its ambitions lie further than that.â
