Series B announcement MEGATHREAD

Any future opportunities for people who missed out on the crowdfund? Late to the game but would love to invest.

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What’s the share price ?

Or more importantly what’s the valuation. The last two rounds for crowdfunding were £44m and £141m

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Pre-emption rights have been dissaplied but hopefully the secondary opportunity will be at the series B price.

It’s an opportunity to sell - not to buy.

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You are probably right, but the language is ambiguous.

How do you get to buy, from a new starter. Cheers

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I was a bit confused as well as to whether it’s a sell or buy opportunity for existing shareholders? Are we 100% sure it’s for selling?

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Welcome to the community @Greg1 :wave:

It looks like this round is a private Venture Capital round. But Freetrade’s CEO has recently said on Twitter that retail investors will have the chance again to invest in Freetrade. Freetrade can only raise a certain amount annually so I’d expect this to be later in the year when the limit has been reset.

Hope this answers your question :smiley:

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Wondering if the Crowdcube option to sell would provide the current price and would therefore provide a rough sense of the pre-money valuation

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Thank you for your message. I would like to invest in the future

I don’t think you’re the only one! Hopefully their crowdfunding raise is soon :crossed_fingers:

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Great news and congrats to the FT team and all shareholders! Would be good if existing investors could be kept apprised

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Congratulations! I just wish I had shares already ha ha. Shame. :frowning:

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Well, while we’re waiting for something official, some facts:

  • The last valuation was £140MM.
  • The last share price was £2.51.
  • £12MM was invested in the late 2019 Series A, led by Draper Espirit.
  • Maybe fact: According to Sky News, who were accurate about the other details, £35MM has been raised in Series B.
  • The extra “likely above” £15MM will not cause dilution assuming it comes from existing shareholders.

Assuming Series B was…

  • £2.51 = 20% equity / £175MM valuation
  • £5.02 = 11.1% equity / £315MM valuation
  • £7.53 = 7.7% equity / £455MM valuation (unlikely)

Usually Series B rounds tend to be between 10 - 15% equity, so if it were just £35MM we’d probably looking at a maximum valuation of £350MM.

But considering they are looking to buy from existing shareholders directly, this indicates they are trying to get close to a magic number – let’s say 13%. This gets us a new share price of around £6.30 and a valuation of £385MM. This sounds believable to me, but I’m not going to hold my breath as they could be aiming to secure more than that.

Anyway, it could be anything really. Will be nice when we get the official word!

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is that a typo in the press release:

These global funds join our existing shareholder register, which includes over 13,000 individual investors from seven previous, record-breaking crowdfunding campaigns.

I thought the round last year was the 6th round?

It was - but it was split in 2 so the raises were over 2 years to get around the annual cap on crowdfunding investment. So technically 7.

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makes sense, thanks

Unlikely. The price will depend on when the series was tendered for funding. If it was back in October you should be thinking just a few months after last crowdfund raise.

Whatever the sp is it will be put into perspective when the price is up for us retail investors in the next crowdfund round.

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well…FT in 2019 increased the share price between round 4 and 5 by 10% (in the space of 1 month) because the number of users increased by 5k…

It would be a display of poor negotiation if FT was not able to increase the share price of at least 50% between May 2020 and January 2021 (with an additional 150k users)

In addition the risk of Robinhood was still there in May 2020 but now RH is not coming to Europe anymore…

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