Freetrade’s CrowdCube Fundraise

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.

3 Likes

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.

2 Likes

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).

1 Like

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

1 Like

Thank you for the advice and guidance one this. :smile:

1 Like

Our legal eagle is our Compliance Officer @freetrade_cal :eagle:

Whatever I need to do, tell me because I want to invest in the next round :slight_smile: I think you guys are going to kill it.

4 Likes

:fire:

All you have to do is be a community member, which you already are!

The process:

  1. You’ll receive an email with a private link to the Crowdcube pitch when we start the raise. The pitch won’t be public (i.e. visible on Crowdcube’s feed of pitches).
  2. The email will go to the email address that you signed up for the Freetrade waitlist for.

Ping us through live chat (website or app) if any questions!

2 Likes

Cheers Vik, can’t wait for the launch :slight_smile:

1 Like

Hello,

For the new crowdcube round, will you give the private link to the people that have already invested in the previous rounds? Or you will send the link to all the people in the waiting list?

From your previous email, I understood that the investors will get priority, which makes sense as we will get diluted.

From your previous email:
“As one of our investors, you’ll have early private access to the round. It’s the last chance to get in before global domination.”

Thanks

We’ll send the link to everyone on the waitlist.

In case there is very high demand, we’ll allow for overfunding. The goal is to make sure everyone from the Freetrade community (both investors and waitlist members) can invest! That’s the reason we’ll do an early closed phase for the excellent people who have already put their trust in us and come on board!

3 Likes

You’ve see circa 4x on your investment since the last round, so I for one would disagree that it makes sense for prior Crowdfunding investors to get any special treatment. Share dilution is part & parcel of early investing, but a smaller share of a bigger pie will always trump a bigger share of a smaller pie.

Spot on :ok_hand:

2 Likes

So the earlier investors don’t have pre-emption rights?

My opinion is that I don’t think this should be the case when it comes to Crowdfunding.

Whether or not they do in actuality is another matter that only FreeTrade can answer.

We’ve used the model Crowdcube structure in previous rounds, where investors have either A or B shares. Both classes of shares are the same except B shares do not have voting or pre-emption rights. You get A shares by investing more (different threshold depending on the round).

In this round, pre-emption rights are irrelevant as all existing investors have the opportunity to invest pro-rata, or more or less if they want.

In the future, we plan to still give all existing shareholders a chance to participate in future funding rounds. You could compare this to Monzo, who only offered B shares (ie no pre-emption rights), but still offered the small crowdfunding investors like me a chance to participate in their last round along with institutional investors.

4 Likes