Obviously not the outcome I was expecting.
I will make a small profit (4 digits) for the amount I have invested (3 digits), since I am shareholder only on early rounds, but not the big one that I was hoping, considering that FT was supposed to be one of the success stories.
That was always my suspicion for all fintechs in Crowdcube/Seedrs. Founders are talking about IPO, expansions etc. It is a very very difficult and a long path to achieve that, without warranty of success either.
In my view, most of them either will go bankrupt or being acquired with minimum valuations for their brand, tech, customer base. That is why I never invested in later rounds. It isnāt worth the risk.
You either need to invest in early rounds only, pray the company will be successful; OR be a VC that can afford investment of more than 5 digits, negotiate special terms.
That is the problem with crowdfunding in my view.
Some of us, we have mentioned that to Crowdcube/Seedrs platforms too when any of fintech start up (Plum, Chip, Freetrade etc) made their āannualā crowdfunding rounds; in my view they shouldnāt allow companies to raise millions of capital with āridiculousā valuations, unless can justify that with specific actual KPIs.
I always say that startups should only make 1-3 rounds of crowdfunding at the beginning; after that should find alternative ways (banks, VCs, own profits, lean team etc). They cannot depend entirely to crowdfunding because it looks like a Ponzi scheme.
I feel sorry for the people invested in later rounds; unfortunately I doubt that part of investors understand how different rounds/terms/conditions/valuations work.
For Freetrade specific, I personally believe that Founders were tired / lost interest and decide to sell early, while they can. Freetrade didnāt have the progress that supposed to have during the last years.
It is a pity; I had higher expectations.
