Pre money shares currently closer to 70m (£265m / £3.77)
FREETRADE LIMITED filing history - Find and update company information - GOV.UK - see Statement of Capital from 21 May 2021.
Any key takeaway to extract here?
Statement doesn’t include employee stock option pool, “fully diluted” shares outstanding is 70.3m
Well - Oops
I had it in my head that a 1B valuation was around £8 per share haha. This is great if the number are correct (63.3.m vs 70.3m won’t make a huge difference)
So 64% of the votes think it will be between £10 & £16 pound would people be happy paying for shares between that price range.What price would stop you investing in this crowdfunding round.I hold shares from round 5 and round 6 and I think am happy with the amount I have got.
I don’t hold many from R5 but if it goes past 12x I think I’ll just ride with my R5.
Depends whether there are socks on offer…
Seems a lot of people are coming up with numbers much higher than I am, which I think is probably as result of how much value I’m assigning to new markets.
With that in mind, I’m afraid I’d like to add another poll into the mix: what percentage of your FT current valuation is derived from new markets?
For the purpose of the question assume the current market is transactions for UK retail investors trading any global exchange listed equities / FICC products. New markets are nascent / unexplored offerings such as expansion to international clients, other asset classes (crypto), research services or anything else.
How much of your Freetrade valuation is attributed to new markets?
- 0-20% (most present value comes from current markets)
- 80-100% (most present value comes from new offerings)
Agreed. There were 6m share options outstanding as of September 30, 2020 and probaly at least another 1m since then. My estimate is there are 70.5m fully diluted shares outstanding.
If anyone needs liquidity quickly I am a buyer at £7.54. 2x the price offered in March. Message me.
I think a good starting point is to take the average value per user (from Series B and last few crowdfunds) and multiply this by the latest user number. Which gives:
£915 X 910,000 = £832,650,000
/ 70.3M shares (63M shares)
= £11.84 (£13.21)
I think that’s the minimum to expect if they raised tomorrow. It ignores that the Series B drags down the average above (crowdfunding would definitely not be on as favourable terms) and the growing amount of SIPP/Plus users.
Beyond that fintech valuations are soaring, so they could justify a much higher valuation if they wanted…but I think anywhere between £12-13 would be considered fair value today based solely on the UK market.
30 seems low considering the trajectory, current valuations, new countries coming online etc. updated your target?
I’ve been trying to make sense of the voting - there is def a block that voted between 6-8 which is sort of the low point considering trajectory and also a much bigger block that’s between 10 to 17 (6 out of 7 top seats). I personally voted between 12-13.
Now it’s just countdown and see where we land.
Sticking with 30 for now but I could see it much higher in a few years!
I think it would make sense now for a share split in the next funding round, so new investors could be part of freetrades journey from less than £10.
Splits normally make sense when the price per share is a bit higher, say at least GBP200. I don´t think we´ll need that until at least round 8.
I am unsure what the average investment in FT is among all of us, but I´d be surprised if the threshold of GBP10 leaves lots of potential new investors out of the next round.
I will more than likely join the rest of you and invest. I think if the price is over £10 it could limit the number of investors. Only that you are in double figures.
You want it under £10 because otherwise it may “seem” expensive? Or because you’re thinking of those who may not be able to afford to buy any shares of over £10?
Accept this may well be an unpopular opinion here, but if you can’t afford to invest £10 into a private company, you shouldn’t be investing at all.