Freetrade is crowdfunding on Crowdcube 🎈

They’ve said on the forum recently it’s about double, so I’d expect around £30m-£40m, sorry don’t have any more than that. What we can guess so far:

  • Valuation £36m
  • Share price probably a bit under 2x
  • EIS entitlement £2m
  • Round cap at £4m

I’m sure someone will let me know if I got any of these guesses wildly wrong.

I think it’s very reasonable for everyone compared to many other startup valuations if it is around double last year (when they didn’t have an app, or any paying customers) - these valuations are very rough estimates based on uncertain projections at this stage, they don’t really matter because any projected gains are not real till you can actually buy and sell the company’s shares - it could still go to zero, though that is increasingly unlikely. Any investment now is probably for 5-10 years at least, so the most important thing is growth in user numbers and revenue.

I too would like to see the supporting documents before investing, but unfortunately it seems these will be released at the last minute via crowdcube.

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Hi @Viktor, I just have a logistical question to ask. How are you planning to ensure everyone gains the 11:40 early access email/Crowdcube link at the approx’ same time?

Slightly concerned some may receive the email link noticeably before/after others. I remember last year, there was a delay between the time we were expecting to receive access to the private period raise and when it actually came. This resulted in a few of us commenting in the community that we hadn’t receive the email/access, etc.

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Comparative: “roughly double” makes value per user a bit higher than Robinhood when it raised at a later stage with 4m users. And someone mentioned BUX raising at a lower value/user but I can’t find any details on that one.

Alphabetical order of course. I’ll be sure to get in there and scoop it all up!

This

So imagine a link will be sent today (?) which will go live at 11:40 tomorrow

If early access includes everyone in this community (can’t remember), FT could just post link here at 11:40.

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The link is sharable.

By the way I thought only existing investors get the link at 11:40. Then the community gets the link at 12:00. Finally it opens up for everyone a day later.

It’s the ‘community’ I.e everyone signed up for updates, forum members, Freetrade users

Crowdfunding will take place on Thursday, April 25 at 12 PM UK time via Crowdcube. Community members will receive a head start link 20 minutes before 12 PM to give them a head start before the round is available for everyone to take part in. :running_woman:

This would work for sure! Preferably this would be the case both emails and link posted here.

Yes it says

To ensure our loyal community members have an opportunity to invest, we’ll give you an early head start by emailing you a link at 11:40, 20 minutes before the round opens to everyone. Those first 20 minutes of the round will effectively be in private mode, only accessible to our customers, community and people who signed up to our mailing list. Get on the mailing list by adding your email address on the Freetrade website.

Might skip it because of the 1.5% charge as it is. Unlikely I’ll invest without EIS relief.

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I think it’s very hard to compare valuations (growth is more important than absolute user nos for example and target markets vary as much as business plans). I would not compare with BUX (I’d value them lower personally as they meddle with CFDs which are now heavily regulated), to quote their website:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.7% of retail investor accounts lose money when trading CFDs with this provider.

So I’m not too worried about the valuation of Freetrade in this round, as long as it is a little up indicating optimism, and not outlandish, because valuations at early stages are speculative, based on private numbers we won’t be privvy to, and highly contingent on future plans. It seems reasonable to me.

So imagine a link will be sent today (?) which will go live at 11:40 tomorrow

That would be nice. Personally I think in terms of the link to previous investors it should be at least an hour before so we don’t have this concern over links, and ideally days so that people have some time to digest docs and consider - they could just cap the initial part of the round to £1m or something, then open it up for further investment to the public to give everyone a chance. However there is a cool-off period anyway as Adam noted, so you can always put in what you think initially and then cancel it if you change your mind.

I think it makes sense because Freetrade is at an earlier stage the user growth is far higher week on week than a more mature competitor. It only just released Android and invited it’s whole waitlist. It now has 25k+ users and should around 30k by the end of the week…

The Bux round wasn’t great, they raised less than they wanted. Whereas Freetrade will raise the maximum it can in a very short amount of time. I think they’re on a different trajectory.

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Agree @kenny that valuations are difficult and @Rob14 that the trajectory is good. Looking forward to reading something about revenue/users/metrics tomorrow (unless any of that was disclosed last night?)

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With the pre-money val of £36MM (see latest mail) versus last round premoney £18MM + ±3MM raised, would the theoretical value of previous round shares be approx. x1.7? (£36MM/£21MM)

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Which makes the share price circa. 85p?

Hi

Our Crowdcube round will launch for you tomorrow ! We’ll send you a link to our pitch page at 11:40 AM Thursday 25th April .

I’m now worried the email will go missing! Eeek

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I’d be lieing if I said I wasn’t worried about this too haha

Edit: the email link being delayed that is

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It sounds like what I said came across a little differently!

We are actively planning to expand into a Northern European market as a first step. We will use this market as the testing ground to refine our expansion playbook. Core to how we expand is making Freetrade really local to these markets, which is work that is more in the background and you may not see (other than local waitlists before we launch).

We already have quite a bit of expertise on the team when it comes to market expansion. @Gemhappe for example worked on expansion projects at Snap and Google, so did I, and our new growth lead arrived from Uber, and he’s quite experienced with expansion initiatives.

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Get those “meet the team” blog posts back with all these exciting hires, we have only seen three of them since November! :stuck_out_tongue:

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@Diversify Thanks for raising it, as we’ve been already looking into ideas! The above from @rod sounds good, @Freetrade_Team1 will post the link here on the forum at 11:40 AM tomorrow!

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