Freetrade is crowdfunding on Crowdcube 🎈

[kenny (Kenny Grant)]

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.

[Rat_au_van (Emma)]

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

[Jeff (Jeff puckering)]

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!

[kenny (Kenny Grant)]

@Rat_au_van

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

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.

[neovo]

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

[Dave (Dave Smith)]

If EIS only covers the first 2 Million, That’s where your 20 minute advantage comes in

[saf]

@kenny

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?)

The cap is €8m without a prospectus, but I think this is over a 12-month period.

[PoemofXtasy]

Can someone explain EIS? I know it’s a tax relief, but how does it work? What do you have to do?

[Dave (Dave Smith)]

You get sent a form to fill in and send to tax office, I’m PAYE so tax relief gets added to my tax code. I guess it’s different if you self assess. You need to claim the tax relief to be eligible for CGT relief when you sell, so don’t skip this or it will cost you a fortune when Freetrade IPO’s at a multi billion £ valuation

[Wulfy]

And to add to Daves email. Filling in the eis form as a none self assessment individual is very easy. Don’t get scared by it asking for your tax number, there’s also an option for national insurance so just fill that in.

[neovo]

I was also wondering this

Or do we get sent a private link which will go live at 11:40

[saf]

The link is shareable, so it might also pop up here, so much pressure

[Freetrade_Team1 (Freetrade_Team)]

@neovo

Or do we get sent a private link which will go live at 11:40

This is what’ll happen.

[PoemofXtasy]

Is it still important to do if you are investing small amounts?

[Dave (Dave Smith)]

Yes if the potential selling price puts you over the capital gains tax threshhold

[gmullebr]

I just noticed the 1.5% Crowdcube fee, was this also levied during the previous round?
I don’t remember a fee being added to the invested amount.

[Vlad (Vladislav Kozub)]

@gmullebr

I just noticed the 1.5% Crowdcube fee, was this also levied during the previous round?

That is definitely not the case. The levy was introduced in November 2018, whereas the funding was in May 2018.

Freetrade, however, would have paid a fee themselves, although we do not know what that fee is.

[Viktor]

@gmullebr

I just noticed the 1.5% Crowdcube fee, was this also levied during the previous round?

It’s a relatively new fee introduced by Crowdcube. I think @HannahCrowdcube could provide more information.

[Rat_au_van (Emma)]

On the question wiki it says there are no plans to include VC. Is this an ideological decision or purely that there’s no need yet?