I sure hope not 
. If so RIP my investment
1 Like
HL & AJ Bell are down 52% & 43% over the last year it’s going to be tricky. There public markets prices are priced daily while private markets are price maybe annually. There are countless other examples in the public markets worse.
I say this as someone who put in more to R7 than any other holding.
2 Likes
Will be a learning lesson about high risk investments! 
I invested in another crowdfunding with a fairly established company and I think they sold the company at like 90% loss - Money Dashboard.
Will see what info is in the next Free trade update, hopefully they’re supercharging growth in Europe etc.!
1 Like
I’d hope Series C doesn’t happen before some significant new features are unveiled, because on publicly available numbers I can’t see Freetrade commanding a great valuation currently.
Freetrade has historically had great customer retention numbers, which bodes well for later fundraising rounds, but I wonder how that will hold up with other competitors executing better, a continued lack of basic features and a market downturn.
4 Likes
Yes and why is that?
Can you share some news on the user numbers that you are referring to? As far as I am aware Freetrade have almost 1 million ACTIVE customers??
Just this graph: How many users now? - #4053 by zaccharles
Massive drop-off in the user growth rate.
I think it needs something to recreate the excitement. We’ve had quite a long time with major headline grabbing new features (yeah we’ve had a few new things but they haven’t been particularly exciting)
Hopefully we’ll get something soon, and hopefully European rollout will create a bit of a buzz again.
2 Likes
FT could do a convertible round. Avoids deciding on a new valuation and investors get a % discount on a valuation at a future date.
8 Likes
good shout.
2 Likes
In my experience, convertibles usually mean the company is doing badly and wants to mask the share price while getting in additional funds. So I really wouldn’t like to see Freetrade go that route.
5 Likes
That graph shows 750,000 daily users. If that is not magnificent then I don’t know what is.
2 Likes
I think future investors will be looking at growth rate though. All speculation, anyway.
Maybe revenue and potential to turn that into profit.
That’s normal once we start reaching market saturation within a region. Next step for Freetrade is international expansion and imo the valuation going forward will be depending on how well they execute that.
5 Likes
The UK market is far from saturated and to focus simply on user growth is exactly the problem that Netflix got themselves into.
More relevant metrics would be -
CAC - Customer Acquisition cost.
AUM - Asset under management.
% of users who have upgraded from GIA
ARPU - Average Revenue Per User.
We don’t get access to the numbers but a series C will be set with VC’s who do.
Aside from EU expansion the app has a solid critical mass of users, it’s time to start generating more revenue with new features.
12 Likes
MoneyDashboard Moneybox has raised over £4m so far, so there’s still a lot of appetite for fintechs. That’s got to be good news.
Also, Freetrade have traditionally raised relatively small amounts in comparison to equivalent European and US startups. The large secondary transaction offer around the Series B raise was also a good sign.
2 Likes
Money Dashboard is where I just lost all my money? Lol. They just sold up at like 90% loss.
3 Likes
My bad, meant Moneybox 
4 Likes
Did you get your annual fee statement? If we all posted our charges we could figure out a rough estimate on ARPU
1 Like