Freetrade - Seedrs Secondary

Do they come with an NFT? :wink:

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I’m also looking to sell 5,000-7,500 shares at £9.25 (without seedrs fees).

And sure, I’ll send you an NFT too :joy:

I’ve said to Seedrs that I think their promotion of this is misleading. It looks like they are running a crowdfunding, which they cannot do.

We didn’t approve it.

Thanks to an oversubscribed round, we were able to offer liquidity at our last institutional round to all shareholders at the same Series B price. We hope to do the same in future funding rounds.

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Thank you for providing this clarification @adam

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Moreover, since the last round we have had access to European shares and a closer European licence go-live.

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Yup, it’s now live for anyone wanting to top up at the price of the last raise.

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Freetrade have got to be in the process of raising a Series C so sort of surprised Seedrs is running this right now.

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So who is the seller surely if they are a round 1 or 2 investor they are on this forum. Congratulations hopefully the sale goes well.

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~£600K I’m guessing that was a £10K investment in R2

Pretty good return that

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Yeah very impressive returns with plenty of room for more growth.

As noted by Seedrs, there was an “Angel” round at £0.07 so it seems likely if they’re using the word “Angel” to describe the investor they would mean that round, so ~£600k represents a ~£4k investment in that round, and “some liquidity” implies they hold more shares. If they are an angel investor who invested >£4k in the angel round, they initially owned around 5% of the company.

During 2016, Freetrade subdivided shares (1 → 1000) so whoever this is probably purchased ~50,000 shares and ended up with 5,000,000 in late 2016. If we look at who the shareholders were at that time, there’s a very small number of candidates. I won’t speculate though, but it’s probably easy enough to guess who it is selling them.

edit: I think I did the math wrong, fixed.

edit edit: wait maybe I still did it wrong. If that math is right then they’d be selling £600k of a £50m share holding, but nobody would do that. I have debunked my own theory. I think. Maybe. Maybe someone else can do better logic than me.

edit edit edit: they’re “B Investment Shares” which were issued starting from the first crowdfunding round, angel round shares were “Ordinary” (now “Ordinary A”) so it must have been the first crowdfunding at the earliest. I am indeed dumb. I’ll leave this post here as a monument to my bad brain.

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Good effort, but here are some corrections:

First valuation was £1.9m, so certainly not 5%.

Share split would have been before crowdfunding round, so £4k would have been around 50,000 shares and still would be.

A shares were available in the first crowdfunding round for investments over £3k. A shares now need to be converted to B shares if you want to sell them, so noting that they are B shares, wouldn’t give any indication of which round they are from.

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That’s not right, as it was only £4M in R2 when I invested

Edit: It was £1.9M pre money in R1, just checked on crowdcube. That’s why the returns are so great, because it started off reasonable. nowadays crowdfunding companies want to start with a pre money of £100M :stuck_out_tongue_winking_eye:

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You are right, sorry, missed the decimal point. Edited. But still wouldn’t have lead to a 5% holding with just 4k investment.

Sorry for the confusion. I’m referring to the very first fundraise, the Angel round. If someone invested £4,000 in the first round, they would have held 5% 2.5% of all shares because the valuation was ~£200k. However, I just realised you might not be able to see the whole Seedrs page, so for clarity, this is what I was basing my information on:

Here’s the full Seedrs information for anyone curious (you may need to right click > open image to see the information at full resolution) which includes the round valuations etc.

Main page:

Key information:

The due diligence page is just links to Freetrade website + articles so I didn’t screenshot.

The subdivision of shares happened before the first crowdfunding round but after the angel round.

Ok, I see now, thanks for clarifying.

I wonder if they are using “Angel” Investor and “Angel” round consistently, in which case it would be limited to a small handful.

So wouldn’t this be a member of staff from back in 2016 then selling some or all of there shares. Was the angel round open to the general public.

This could be embarrassing for FT if it doesn’t sell out at the old price.

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Yep - most likely a co-founder who according to companies house still has a large number of B shares and has been selling recently. See page 88. application-pdf

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