What does that actually mean? Same share price? Buying secondary shares off existing shareholders? No EIS 
“we’re also making a secondary opportunity available to all existing shareholders.”
When???
I agree, although only A Shareholders are eligible according to the articles of association and they are normally disapplied in a vote. Also, maybe a bit rich for me to try to take up the whole pre-emption amount.
I take it to mean existing shareholders will get access to selling ( and maybe buying ) via the secondary market in this process.
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Yes, I wish the same.
I wish existing A shareholders are given the same opportunity as VC’s to buy from proposed secondary market. This would mean that company honours their shareholders pre emptive rights.
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From another thread
Absolutely no way I am selling my shares until the share price hits at least £20 in 2-3 years and I qualify for the EIS Freetrade is going to be a global brand in Oceania/Asia/Europe/North America in 1-3 years and I can honestly see the shares being a minimum £20. Now that Freetrade have a bit of money behind them hopefully they can now kick on by improving the user experience ie; PIES,UK FRACTIONALS etc.
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Okay, yep losing EIS relief would play into the selling decision. However, if they open the secondary market for buying as well, will you buy?
Asking because I can a case for a much higher share price for the crowdfund later this year.
So no new shareholders? I only found out about Freetrade this month and would love to get in on this.
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Adam mentioned another crowdfund for later this year, so watch out for that if you are interested in investing in Freetrade.
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Yeah I wasn’t clear on that.
The announcement says:
The oversubscribed round is expected to be worth in excess of £50m ($69m USD), as we’re also making a secondary opportunity available to all existing shareholders.
So does this mean they’ve raised £35M with a further £15M up for grabs to existing shareholders?
VC’s are offering to buy out existing shareholders. You aren’t getting the chance to buy more.
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Ah, cool! Thanks.
In that case I don’t get how it’s a £50M round if there’s only £35M of shares issued? If the other £15M is VC’s buying up early investors shares how is that relevant to the round?
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Its relevant for the VC.
Usually a VC wants a % of ownership. Lets say 15% in this case. With an investment of £35m maybe they didn’t get the % of ownership that they need, so they will buy additional shares in the market to achieve their 15%.
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I think they have done well. Setting a secondary market gives opportunity to early shareholders and employees to take some profit.
Having said that, unless you are really need the money, why would anyone sell right now ? It doesn’t make sense, when they are still growing and adding products and expanding to new countries.
(not financial advice)
I, for one, am pretty pleased. I am sure Adam partnered with the right VCs and the funds will be well spent for expansion and product development.
Hopefully it will be a unicorn pretty soon.
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It’s more likely because it was oversubscribed as mentioned in the blog posts, you only have a few options in that case.
Also, and I’m not overly familiar with equity fundraising but if you are oversubscribed then does that suggest there is headroom for the share price?
It would suggest underpriced but these rounds are probably negotiated over months and it’d be a mistake to undermine relationships by going back to ppl who have committed and say the deal is off unless they agree to a 20% higher price. Being oversubscribed sends the right signal.
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Should the new crowdfunding raise later this year not get it on the same terms as the current VC’s got it? The VC’s always seem to get the good deal when it works the other way round(on the same terms) is what they say
Freetrade will be a unicorn before the year is out 
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The crowd has had multiple chances to get the leg up over VCs – it was only last year that VCs were finally given the opportunity to invest.
Whatever the agreed Series B share price was, the company is most certainly more valuable today. It would be fair for all shareholders – VCs and otherwise – to price accordingly. FT has proven its ability and commitment already. And let’s be honest: when the next crowd funding round comes along, people will be prepared to pay the market price.
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