Assuming no VC involvement (who might push for a lower valuation) in the next crowdfunding round, I donāt see any reason not to value Freetrade at Ā£1B+ given the recent valuations of other fintechs.
I think that Freetrade will reach their funding target within a matter of minutes / 1 hour irrespective if the valuation is Ā£600M or Ā£1B based on how popular the previous funding rounds have been.
Iām not saying that itās a reasonable valuation, just that based on the current sentiment theyāll likely hit the funding target either way, so may as well aim high and sell less % equity in the company.
At the moment they have a 3 year runway and I think they said they are going to raise 15 million off the crowd 7.5 million in the UK and 7.5 million in Europe. I personally would raise 15 million in Europe with the first 4 countries being able to purchase shares Sweden/France/Netherlands/Ireland with a Ā£5k limit per customer.
We all know, neobrokers are not the same. Trade Republicās business model, target market, headwinds so on and on is different. FTās cap table is kind of a mess. No top tier VC with a large %. Co-founders coming and leaving, key people leavingā¦ Adam downplayed Ianās departure but CTO in a tech startup is kind of an important position. Letās agree that $ per user number is just a rough metric for comparison.
So the September CF round will not be on a preemption basis? Please remind me, do we have preemption rights with FT?
You are right indeed. Each neobroker is different. That being said, Iād like to understand how the differences between Freetrade and TR create the (Iām guessing) huge gap between the two valuations.
Furthermore, FT raised 30m in Series C, if Albert is right, they are looking to raise another 15m from Crowdfundingā¦ 45mĀ£ look pretty week to conquer Europe when someone else is coming at you with 900m$
To understand that difrence of valuation of two companies, we need to go deep in to weeds of both companies. Even if we get all the facts, valuations is not exact science. The fact that such TR round at this high valuation was lead by Sequoia, is also strong signal.
Can you please elaborate on what you posted? You say Co-Founders as in plural and you also mention ākey peopleā who are the key people? Also who are the Co-Founders ācomingā
I understand Ian left but I donāt know if any other comings and goingās? Thanks
I donāt see what the issue is with what you are saying. People come and go at companies all the time? You canāt force people to stay who choose not to? How do you know that the people who have left and Viktor arriving are not positive moves?
If anything that demonstrates resilience and proves thereās no dependency upon one single set of individuals which is a good thing, especially given the growth rate of FT. We donāt want to see key people leave, but if they do,the show must go on!
The only people leaving Freetrade that I would ever worry about are customers.
Blimey if I thought for one second that the success of Freetrade is pivotal on one or two ākeyā people I would crap myself. Guys, donāt travel together in the same car ok?
As for CTO. Oh please, Iāve been a CTO and trust me, weāre not THAT critical.
Iāve assumed 875,000 users, which is roughly 1500 new users a day, and I calculate a share price of around Ā£11.20.
I think there is a strong argument for it to be much higher than that based on competitor valuations, launch into EU etcā¦ but I donāt think Freetrade will go down that route.
