Freetrade is crowdfunding on Crowdcube 🎈

Each investor is allowed up to 5% of the raise?

Something tells me Monzo’s 96 second record is seriously at risk here.

(Apologies if someone already said that - I couldn’t be arsed reading the whole topic to check :cowboy_hat_face:)

That’s the target, we don’t yet know what the upper limit is going to be :wink:

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Keen to know if FreeTrade have secured an Institutional Investor as part of this upcoming fundraise. With competitors such as Robinhood rumoured to launch in the UK this year, having the backing of investors with deep pockets will be key.

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I have a few questions:

  • Is this the Series A?
  • Are there any other planned investment rounds this year?
  • In the last round the pitch deck was shared a few days before. When will the pitch deck be available?
  • What share types are on offer? If there’s only B Shares then will existing A Share holders receive A Shares, or B Shares?
  • Will the 1.5% Crowdcube fee apply in this fundraise? If there is a 1.5% fee then will existing share holders exercising their pre-emption rights be exempt from the 1.5% fee?
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To answer your question, you’re generally ok to invest from abroad. The exclusions around location apply to residents in other countries, here’s the guide -

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:eyes:

Freetrade crowdfunding round 4 FAQs ❔

@saf we’ve answered your questions there :grinning:

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Thanks Alex

A few follow on questions

  • The FAQ says there’s no plans on doing another crowdfunding round. However. Does the same apply to institutional rounds? If so, are you planning on doing a Series A this year?

  • In the last raise, A Share investors from Round 1 & 2 received additional A Shares in Round 3. Why is this no longer the case in Round 4? Additionally looking forward do you envision only B Shares being offered?

  • I know the 1.5% fee for exercising pre-emption rights isn’t levied by Freetrade… But is there any way to circumnavigate this?

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Any idea when these will be shared?

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Also any idea on the amount of voting rights class b will have?

Class B shares have neither voting nor pre-emption rights. But as with Class A shares, the right to dividends and capital distributions. This is a pretty standard distinction.

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@Freetrade_Team1 maybe worth adding a link to https://help.crowdcube.com/hc/en-us/articles/360001527460-What-are-the-fees-for-investing-on-the-platform- to the faq: Crowdcube’s rate is higher than 1.5% if you’re investing small sums, the rate is capped at 250, and it’s added to your investment sum rather than deducted from it.

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Thanks for all the info - once more details are available I would be interested to know if existing investors will be dilluted and by how much.

Cheers!

Excited for more information.

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The difference is Freetrade B Shares have no voting, or pre-emption rights.

What’s the benefit of investing before others? It was said that a private link will be sent to all members. Assuming that even when there is global access on Crowdcube and the target has not met yet, how one can benefit from investing in advance through the private link ?

I guess because the target will be met fast so those 20 minutes could come in handy!

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Really nice pitch video as Emma said - really exciting to hear Freetrade’s plans, esp. for me the expansion into Europe has the potential to really expand your customer base. Congratulations on all the progress so far.

Open questions I’d like to see an answer to:

  • The limit on funding (not the target, which doesn’t really matter)
  • The New Valuation/Share Price
  • EIS (to be confirmed when you hear)
  • Have you got any other investors this round or is it all crowdfunders?
  • Details like user number growth to date etc - or is this going to be released on the 23rd?

It’d be nice if existing investors had a bit more than 20 minutes, would an hour be possible? I very much doubt they’d fill your allocation in that time - that would tend to happen after with new investors - see the monzo raise for example.

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Monzo had the stipulation that investors had to have an account open by the time the crowdfunding was announced, where all you have to do to qualify for the early window with Freetrade is be on the mailing list or forum. I think the target will be reached well within that 20 minutes

Just look at the last raise, hit target in 12 mins wasn’t it? so needs to be a short window or no one else would get a chance!

Given your prediction on Monzo (which I doubted would hit 20 million), I’m inclined to believe it!

I meant the overall cap though (unknown at present, might be 20 million say), not the target (which is largely meaningless and usually low-balled).

I’m hoping they have a low target and a very high cap (say 7 million, is that the amount for a raise without a prospectus now?), in which case 20 mins is not enough to fill it, but let’s see what they say. We know the cap must be at least 2 million as they mentioned they were covered to that amount for EIS.

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The round three cap was £3m so it’s safe to assume it’ll be more than that, perhaps £5m?