Freetrade's crowdfunding on 25th June at 11am šŸŽˆ

Crowdfunding Freetrade šŸ™
22

This will be interesting to see given the previous round being only two months prior

Surely Ā£1+ (Especially with the 1.9m raised at r4)

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23

The round 4 funds wonā€™t affect the share price, but growth over the last two months will

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24

In fact, I would argue the opposite. Ā£2m of injected cash is a definitive aspect of the valuation (whereas growth is not quite) and it would be fair if new investors paid a premium for the existing cash pillow which was not there back before R4. After all, they are getting a piece of a business with more assets, hence the price should reflect that. I think the minimum valuation should be at least the last roundā€™s post-money valuation :slight_smile:

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25

Company valuation yes, of course, but the cash injection alone shouldnā€™t affect the share price, should it? Otherwise you can make paper money simply by having more paper money.

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26

The company valuation will have gone up, but there are also more shares in ā€œcirculationā€ I guess share price would be the same unless you account for some organic growth through new users etc.

27

So, Liz is correct. The pre-money valuation was Ā£36 million, we raised c. Ā£2m, so the post-money valuation was Ā£38m.

The value per share doesnā€™t change thanks to the Ā£2m though since there are now more shares outstanding (issued for the Ā£2m!).

The valuation will be higher than the post-money valuation from round 4 too though so the share price will be higher as a result.

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28

Oh I see, learnt something new today!
@lizmcp my apologies for the confusion :slight_smile:

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30

Glad we finally have a date, although gutted itā€™s not at the end of the month as this is just 3 days before my pay dare :persevere:

Just really hope that we wonā€™t run into the same issues as last time especially as Iā€™m going to be at work so wonā€™t have as much leewayā€¦

Fingers crossed those with deeper pockets will give the rest of us a chance to get in on the EIS. :sweat:

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31

Donā€™t forget that -

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32

Thanks! I completely forgot about this :smile: how soon we will know if we will be eligible for EIS? Would make a difference to how much money Iā€™ll be able to throw at you guys :wink:

34

Amazing if thatā€™s the case :smiley: itā€™s a 30% rebate iirc?

36

Thanks again :slightly_smiling_face:

I remember some of the stuff from the last round but Iā€™ll definitely be reading up again closer to this round.

My biggest regret at this stage is not having been aware of you guys sooner to have been able to invest every round to date :joy:

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37

EIS eligibility isnā€™t determined by Crowdcube. You meet the criteria or you donā€™t, and we just need to file the forms within 3 years of issuing the new shares (weā€™ll do it faster of course).

There is a risk that HMRC could reject the forms if they determine the eligibility requirements are not met. So to de-risk that they offer a service where you can get them to give you a letter in advance of issuing new shares saying they think you are eligible.

We got that letter in advance of the first three Crowdcube rounds, but HMRC has been slow this time around as I requested it in early March but still havenā€™t received it. Whether you have a letter or not doesnā€™t impact eligibility, itā€™s whether you meet the criteria or not.

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38

I think I remember that being explained last time, but trust you guys to know what youā€™re doing :wink: Iā€™m also sure Iā€™m eligible for it when I checked the criteria last timeā€¦

On this occasion I meant the EIS allocation i.e. Whether the Ā£3m had already been hit or not, just picked the wrong words.

39

We expect to have Ā£3m EIS tax relief available for this round.

Thatā€™s on top of the roughly Ā£2m that was used up in round 4, back in April.

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40

I saw, but I meant Iā€™m hoping that wonā€™t have all been used up when I get a chance to put my pledge through - last time it went within minutes! Albeit some of that was due to errors, but Iā€™m still not holding any hopes until mine had gone through because there are people on here putting tens of thousands in one goā€¦

41

The maximum is Ā£25,000 this round. I still think it will go quickly so just keep an eye on the total already raised when/if you decide to invest

42

I saw that after my post Although Iā€™m sure it was higher last time! So I edited my post to reflect that in case my memory was wrong haha. Still wouldnā€™t surprise me if it went ridiculously fast; I know if I was super rich Iā€™d want to put down a nice tidy sum :grin:

43

It was Ā£50,000 last time. Think itā€™s been reduced to give more people a chance (which is nice)

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44

Knew it! Thought I was just going crazy :joy:

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