Anyone have a rough estimate of what price a share will be at the next round of crowdfunding?
What makes you think there will be another?
There is a series B coming up, but FT value changes from one month to the next.
If you know anyone who can tell future valuations of companies I’d love to exchange numbers
We had some discussion on the series B share price about 2 weeks ago here:
I think it’ll be a bit later than December, I imagine the generous SIPP incentives will convert remaining capital into great user, AUM and revenue growth metrics for a funding round.
Perhaps you are right, although all those incentives seemed to have a common end date - December 6th and 7th, leaving enough time to update metrics and have a pre Christmas funding round, although it probably does take longer than that!
@adam was there any update to this slide?
Is it stupid that I keep thinking Robinhood will purchase Freetrade at some point?
They looked at getting into the uk but pulled out. Maybe looked at Freetrade and thought they are already making great progress in the uk and doing what they would be doing.
They have fundamentally different business models. Robinhood’s number 1 income stream is illegal in the UK and I assume Freetrade’s approach might be too low-margin for a US company once Freetrade makes a profit.
I hope not, I want to stay invested in Freetrade till it gets much bigger
What is Series B and what does it mean for the share price?
“Series B” is a way of describing the second main funding round.
Seed: one or more rounds, before looking for big money, to fund a business model while its concept is being proven.
Series A: usually the model is proven, or at least less risk. Big money which helps the company to get to some milestone (e.g. pay salaries for a year, increase marketing spend, expand to new market, etc).
Series B, C, D, etc: subsequent rounds, usually funding the company before it becomes (highly) profitable.
Crowd funding is a bit of an outlier but it’s usually considered to be “seed money.”
There is no rule about the name of a funding round. You could call it “Series Boogaloo” if you so desired. The ABC approach is just a very rough indication of how far along the company is.
Usually it is considered highly damaging to raise money at a share price less than a previous round. Investors want to pay more than the previous round, not less, as it indicates the company is headed in the right direction and inspires confidence. The opposite does happen however, especially in times like these (airbnb was a recent victim IIRC).
Expect the share price to be higher.
Excellent answer - really appreciate it!
When will the Freetrade Series B raise be announced?
Later than sooner I hope
I agree - patience is a virtue.
If Freetrade has sufficient cash runway… there is no immediate hurry to close Series B unless it can do so at a very attractive valuation.
I’m personally hoping for a share price close to £10 at the next raise.
This may seem very high, but Freetrade currently has the wind in its sails in an attractive sector that has outperformed most throughout Covid.
IMO would be favourable if the next round was negotiated on the back of some exciting data demonstrating large demand for / take up of SIPPs.
Couldn’t have said it any better
That would be awfully awesome. That would put the valuation at circa £600M pre-money?, or thereabouts right?!
“54,598,676 shares issued” according to a post by @GMCay times £10.00
I wouldn’t mind that
Exactly. That’s a bullish valuation, but given tech valuations in the market I don’t think it’s completely crazy.
What would enable this sort of valuation is excellent data around customer conversion (and retention) to ISA, Plus, SIPP etc and trades (delivering strong FX fees). If these are growing at a strong clip and churn is low… this would justify a high customer lifetime value which would help underpin a high valuation.
Didn’t Series A take about 6 months for them to officially announce it, would it not be the same with Series B?
It didn’t take 6 months. The rounds were merged even though the VC money followed the crowd money.