Freetrade’s CrowdCube Fundraise

I was thinking more along the lines of staying in control of their own ship, what if someone pops up with a £20,000,000 pledge and walks out with 50% of the company (or whatever)

Oh sorry, I though you mean investment in the UK and US securities, not as part of the fundraising. Then it is a valid point.

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haha, i see what you mean.

“Hey guys sorry but you can only invest £1,000 in that ETF” …

:grinning:

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We’ll only be offering a certain amount of equity. We will allow overfunding in the case that there’s demand (let’s be honest, there’s going to be demand) - but nowhere near enough to acquire the company!

Oh no this is not good. You mean i have to exercise restraint? Can’t you just tell me how much i can invest so i don’t get carried away? :wink:

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We’ll be structuring similar to previous rounds where the amount you invest will determine what rewards you get (free Alpha for life, anyone?). The best reward being A shares if you invest over £20k.

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Hey @adam, in your upcoming Crowdcube pitch deck, can you give more details about your proprietary technology stack? Obviously without giving too much away to the competition :wink:

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Blog posts coming, for now: https://stackshare.io/freetrade/development (needs an update)

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Just in from Adam:

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image

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I’m on the waitlist with a different email address to the one I use with Crowdcube. Is this going to cause an issue with that? If so, is it possible to change the email I am using on the waitlist?

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No issues! We’ll email you a private link to your waitlist address, and tapping the link, you’ll get to the live pitch page, which won’t be listed on Crowdcube - so the only way “in” will be this link.

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Is it possible for me to invest for my son also? He is 5 so i think this would be an excellent long term investment for him.

Hi Stephen, Hannah at Crowdcube here :wave:

While this is a lovely idea, unfortunately, we can only accept investment from people aged 18 and over.

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Also im just sitting working out share dilution stats so I don’t get diluted too much out of my “current” equity %. But can’t seem to figure out the math over 3 different rounds. Do you guys know of an online tool for this form of calculation?

By my calculation it’s a 21.99% dilution between round 1 and round 2. Hard to say between Round 2 and 3 right now.

@HannahCrowdcube knows the most about this topic, and I’m far from a financial adviser, but I think you can transfer stocks between people.

Our standard advice on the transference of shares is as follows:

The ability to transfer shares depends on the Articles of the Company in question.

Under the Crowdcube Articles currently in force, B Investment Shares are freely transferable, and the
company must be notified of the transfer. A Ordinary shares cannot be transferred until the pre-emption
on transfer provisions are complied with, essentially A Ordinary Shares must first be offered to the other
holders of the same shares before they can be transferred. Some Articles have permitted transfer
provisions which carve out certain transfers (i.e. to an investor’s spouse or child) from the pre-emption
on transfer provisions.

As we are not able to offer legal advice, and as any transfer will be governed by the Articles belonging to
each company, you should contact them directly. You may need to supply the grant of probate and/or the
death certificate (depending on what the company requests).

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So does this mean i have to buy them in my name and then transfer them to my son’s name?

In theory it’s possible, however between Rounds 1 and Round 2 I don’t think this happened based on the ‘Explanatory Note.pdf’ document. They said something to the effect that options and share promotion shares have been taken into account and will not dilute the crowd further. Personally some dilution arising from employee options doesn’t concern me because it just serves to further incentivise the team members to commit longer term to the project, also employee options have vesting periods etc

As any transfer will be governed by the Articles belonging to each company, you will need to speak directly to the Freetrade team to discuss this. I’m sure @Viktor will be able to provide you a point of contact for the legal eagle in their team to see if this would be permitted

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