Freetrade share price 📈

I’ve assumed 875,000 users, which is roughly 1500 new users a day, and I calculate a share price of around £11.20.

I think there is a strong argument for it to be much higher than that based on competitor valuations, launch into EU etc… but I don’t think Freetrade will go down that route.

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BingOooo! 5…10…21!!!

In love with this thread… makes me dream :star_struck:

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Thanks GMCay. I appreciate your work here.

If you have time, I think a better approach towards establishing an indicative share price would be to look at comparables - the valuations of competitors in Europe and the US, looking at the number of registered customers, number of active customers, assets under management, trade volume, revenue (if available), and whatever other KPIs are available. IMO a premium would also apply for territory licences, community size/vibrancy, and team quality. The latter two are qualitative, but we could probably collaborate to come up with rankings. With a good benchmark, we could then also track FT’s growth VS its competitors over time to get a view on marketshare.

The “neo broker” industry is still nascent, but we should expect some normalization of KPI reporting in the next 2-3 years (particularly as eToro & Robinhood go public), and then an inevitable wave of consolidation. As we consider investing more of our own money during these phases, having a model like this to share would be phenomenally beneficial for the community. I know any VC investing in this market will have the same, though they would also likely benefit from proper data sets instead of the stale morsels of data occasionally thrown casually to us braying wolves.

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I wouldn’t feel too bad for people that sold at £3.77. It was known beforehand that the share price was calculated pre meme stock craze and I think it was obvious to most that FT is on track to become a unicorn. I would expect a £1B+ valuation in September.

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March 31st 2021:
Did this ever happen? I am still waiting.

Yeah the Series B happened at a share price of £3.77

I wish there was a way to be automatically notified when they do one.

There wasn’t an opportunity for us to buy shares with the Series B, it was just VCs

I believe there is a crowdfunding raise coming up later this year. best thing to do if you are interested is keep an eye on this forum.

And pre resister with crowdcube if you haven’t already.

You should sign up for an crowdcube account earlier if you haven’t done so already, and I think if you click on their previous raise there you can click a button to say to be notified of future raises.

Also FT mentioned a raise will happen in September.

I sighed up for Crowdcubrle a while ago.
Thx.

I did not find any ref to Freetrade on crowdcube.


Freetrade raising £1,000,000 investment on Crowdcube. Capital At Risk

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image

Wicked. Thanks

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The only worry is how companies like FT cope with the post-meme stock craze. Some companies are suddenly going to find a huge hole in their finances so hope they prepare well.

When 1 squeeze completes it’s cycle there will be a lot of losers left holding a bag and that panic could create a domino affect on people getting out of the others. Bearing in mind the stocks are usually US and where the FX money is made and through plus it could be a significant change in customer base. This obviously applies to the whole industry and not just FT. :+1:

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Re share price in the next round I expect Freetrade to be conservative, as they have been in the past. I’d therefore expect something more like £5 with a valuation of up to £500m in the next round. Plenty of time to become a unicorn later when it is justified by revenues and growth.

The valuations of some competitors are completely unjustified IMO given their likely revenues and the current frothy market - the incumbents they are replacing earn fat fees based on AUM and every trade, but freetrade and their competitors do not have that revenue model (they don’t gouge their customers but earn a bit less per customer).

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I’m going for a 1 $billion valuation by the year end.

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My impression is they price more aggressively for the crowdfunding rounds and conservatively for the VC rounds.

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Which makes sense since retail investors are usually willing to pay much higher multiples given the scarcity of early-stage investment options open to them.

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Yep. I think it’s the appropriate thing to do as long as valuation is not pushed too high too quick.