growth better than profitability in my opinion (at this stage)
Private market valuations are going to start mirroring the pre profit public markets if you listen to the guys from the All in podcast. They’re investors from seed to VC and up in private market - they know their startups.
6 Likes
Using a funding round in 2021 as a benchmark. Freetrade need to ride out the reduced multiples of revenues that were being used in the last few years, if they want to avoid a down round. If the market allowed a valuation at 45x projected revenues (last crowdfunding round) but now the market is demanding say 30x projected revenues you need to plug that gap, this can be done easily with more revenue but based on my reading of the situation VC’s are also going to be looking for more.
- A shorter path to profitability, which demonstrates less need to raise future rounds and the dilution that comes with that.
- Extended runway / reduced cash burn, the business needs to be leaner.
- Tight controls on Customer acquisition cost (CAC)
The days of growth at any cost like we saw with Uber, AirBnb, WeWork etc appear to be over.
12 Likes
Lets hope Adams estimate of 100m in revenue for this year is true.
TBH I wouldn’t be too upset with a down round as I would invest again, any rise on the current SP and I would not be investing anymore.
4 Likes
That’s incredibly optimistic.
In October 2021 the actual revenue was £2M. Since then we’ve seen the volume of retail trading decrease, which means FX revenue has decreased along with it. I think £2M a month would be a fair guess, as the above is offset by increased users.
To get anywhere near the projected £50M (let alone Adam’s £100m) they need to add new revenue streams. Like Crypto, Share Lending or Short Selling.
All that being said and considering the wider macro environment, I still don’t think the valuation has decreased - I voted £9.25-£11.
Despite both new features and the EU rollout taking way(yyyy) longer than acceptable 
… there has been some progress and new users keep rolling in.
Hopefully they hit the ground running in Sweden and launch crypto ASAP, which will further support a slight increase in valuation 
20 Likes
It also predicts the same valuation as Robinhood by the end of next year!
3 Likes
£111 
17 Likes
Here’s hoping 
2 Likes
Don’t forget the FX commission from people selling is identical to people buying. 
1 Like
Yes, the top traded shares always include 5 or 6 big US tech each week.
If people are trading, that 0.9% for the buy and sell.
how do you get that lol
robinhood is 4x of tht but agree this forecast doesnt make sense at all
Robinhood market cap $8.36 B
7 B GDP is about $8.B
Robinhood made $2bn revenues in 2021
Yea but Robinhood are a bunch of shitesters
I agree!
So I thought I’d check the Swedish Instagram account and they haven’t posted in almost 2 months?!
@KarlB what is the game plan here? With only 2K people in the waitlist and a dormant social media, I struggle to see how you will hit the ground running at all.
Really disappointing that most of my posts these days are negative, Freetrade has so much potential but you’re consistently dropping the ball.
21 Likes
Simon, the comms to crowd investors last year were clear — EU expansion by the year end (2021) and Australia and Canada launches early 2022. I appreciate Viktor’s response in one of the EU threads about finalizing the product with beta testers, but personally can’t help but feel let down.
It seemed like the licence was the bottleneck for some time but it has been almost 2 months since it was granted…
I really hope that behind the scenes the year was not wasted… The year spent on building infra apparently was not enough to add Euronext stocks just yet.
Hard to see for now from a small external investor view point the value added to the business by building infra in house VS relying on 3rd parties to get to market faster and then internalizing some parts of the value chain.
No wonder some guys end up going full Juno/Brian mode on Twitter (being rude and/or not constructive).
25 Likes
Crypto is more strategic than EU expansion in my opinion. It will allow the company to increase the top line significantly.
1 Like