The second page suggests Davide is still a director ?!
He was during that financial year
He was for the period the accounts covered.
I think this might be necessary before then if they were to continue doing crowdfunding:
Would you not expect burn to increase with expansion and reduce the 3yr runway?
This space is heating up… Expect Freetrade to be above £1bn for the Sept raise.
Let’s just go straight to ipo at 1 million users and a Canadian office
I make that $12bn at that rate?
They have more AUM per customer.
Interesting idea. An hedge fund for low disposable income individuals. If they were to crowdfund I think I could be interested in participating
Yeah but they’re valuing themselves at 1x AUM, which is pretty expensive, all these new investment managers have practically no discernible moats. Not surprised to see Ashton Kutcher and Jared Leto (really?) among investors.
Large quantities of hype being flogged atm, can only hope FT get a sizeable piece of the action.
£15+ per share or close to 1bn?
Especially if they will have opened a couple of new markets?
don’t make me all excited, that’s life changing money, I will finally find myself in the camp of the asset rich and cash poor.
I can drool over my paper wealth whilst eating a can of cold beans with a plastic spoon …
Well - you had a valuation based in revenue earlier in this thread. Seems sensible way to approach it but that does not take into account the potential rev growth.
Adding new territories increases the revenue potential very quickly. Call it TAM if you will. Very popular term out there.
Countries by 2024?
all of the EU. Japan. Australia. USA. Likely more.
Population of the EU = 447m
Australia = 25 m
USA = 328m
Uk = 67m
And so on.
We have AJ Bell and HL locally who are both a bit boring and expensive but have asset rich individuals that give them lots of income. (I’ve summed up the fees I’ve paid AJ through the years and it makes me cry.)
valuation of aj bell at 1.7bn and HL at 7.8 bn.
We can expect lower revenue per customer but also a fairly low cost structure to serve those customers. New tech stack and much more agile.
Customer numbers? 4-5 million? 6-7 million?
From that December number of 1.3m in rev to at least the AJ Bell number of 130m which is roughly 11M MRR.
So revs need to ca 10x from December to get there. User numbers have already nearly tripled since then and that’s all within the UK. New countries will help grow things even faster.
If we assume a linear growth in rev then tripling has taken us to… 1.3* 3 = 3.9 MRR or ca 47m ARR but much faster growth which should translate to a higher valuation than the revenue alone would justify.
I can very easily see a valuation north of 2bn in 2024. Very easily.
If the FT business model is predicated on a month subscriptions for ISA/Plus/SIPP can the same revenue per user be expected from the international roll out?
@heytokyo is there a comparable product to the ISA in Japan? What is the culture like around managing retirement savings?
Well - most of the countries we know of that should eh added in coming years should have a similar level of income. That said it’s a question if there are certain types of accounts that can justify the monthly charges. Does Germany have something similar to Isa or sipp? Etc etc
Or is it only the Plus account?
To dig deep you’d have to go country by country and check what’s possible.
I guess the top line exercise I did based on the work of @stephen and other people here implies that there is potential for considerable growth in revenue and getting to a valuation north of 2bn isn’t that far fetched when they go for an ipo.
I’ll be really happy if it reaches that level as I will have more than 25x my initial investment in <5 years.
I think it’s gone down.
I’m putting it at £4 per share because there’s no desktop client and apparently that’s the most important thing in the world. Actually make that £3 per share because there’s still no LISA and that’s the most important thing in my world.
Only 3894 here
@heytokyo is there a comparable product to the ISA in Japan?
Yes, it’s called the NISA and is modelled on the UK ISA. I don’t have one, but several friends have talked about it*. There are two versions (basically lower/higher income), and once you select one it is locked in for the duration. AFAIK, you can only invest into publicly traded Japanese companies with it, and possibly domestic ETF-likes to access international companies, but I may be wrong on that latter point.
* Note that it is not usual for the average folks to talk about their personal finances/investments (it’s actually considered a pretty antisocial discussion), but people in my social bubble are very open about it.
What is the culture like around managing retirement savings?
Japanese people are very conservative with their money/savings compared to the British. There is a culture around saving and opting for low-risk investment opportunities. Although it does seem like the younger generation is becoming increasingly interested in more risky investments, which seems to have been kicked off by the Bitcoin explosion a few years back.
Thanks @heytokyo I really appreciate you taking the time to educate me, and probably most of the forums, on all thing Japan
If the Japanese tend to take a conservative approach to finances then FT might be better placed than some companies who’s revenue comes from more exotic sources.