Agreed. VCs have committed funding based on the performance as of last December. They took a risk and if performance picked up and valuation increased in Jan/Feb, it should be their gain for making the right call and bet on Freetrade.
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I personally think the risk was minimal. I genuinely think with the community Freetrade has. It is ALMOST impossible to screw up.As @adam says “ Freetrade is literally owned by its customers. We were crowdfunded into existence” Don’t get me wrong,not for 1 second am I suggesting that Freetrade existence is not down to Adam
“” Harley Miller, Managing Partner of Left Lane Capital, said: “We are honored to partner with Freetrade as they embark on this next chapter of growth, and continue to make investing more accessible for everyone in the UK and Europe. Left Lane has a strong philosophical alignment with management on doing right by the customer, something that is rare in the fintech ecosystem. This sentiment is further corroborated by the robust and loyal community that Freetrade has cultivated over the years, which we found to be fundamentally unique - a true byproduct of instilling trust and integrity in their platform.””
guys, lets not forget that from May 2020 (Crowdcube round) to December 2020 the number of users increased by over 2.0x, the number of shares on the platform by 10x and the product is much butter.
People that invested in May 2020 took a much bigger risks than the VCs of Series B and I expected that they will rewarded by the risk with an increase in the valuation in this round.
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Techcrunch says the post money valuation is $366 million. This would be GBP 265 million post moeny and the pre money valuation would be 265-35 = GBP 230m. If I remember correctly than the valuation at last year’s crowdfunding was GBP 150 million post money and GBP 142 million pre money.
This means the valuation increased by 56% (new pre money / old post money). While this is good, I have got to be honest, it’s a little lower than expected. Maybe the article or my numbers are incorrect. So tread with caution.
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Yeah, that would mean pre money of 265-35 = GBP 230m, which is about a ~56% increase in share price?
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I have to admit that if that is correct I would be a bit disappointed!
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It’s getting worse and worse…
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The calculation above is incorrect. You need to divide the current pre money by the previous post money.
It’s a 50% increase. £3.80 ish if the post money number is correct in that article.
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That is a little disappointing at first however on a user-basis it does somewhat align if the Series B was negotiated in December as the perception seems to be.
April/May 2020 - Valuation set for CF Round 6 - c. 150,000, valuation £140m = £933 per user
Dec 2020 - Valuation set for Series B - c. 300,000, valuation £265m = £883 per user (a little lower but VCs bring bargaining power due to check size)
A steal for the VCs based on what we know now due to the user growth in January. It does lift the expectation for an atleast 100-150% increase in valuation in the next round though (probably 200% by the time FT needs to raise money again)… which would be very disappointing if it doesn’t occur.
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Yes I would say you can add 150-200 million on to the valuation TODAY rather than the December VC valuation
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Based on what? I don’t think just new users are a great measure.
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I would say users are the most important measure. Without users you wouldn’t be able to measure. Most companies that I have came across recently value each user approximately $1000 So if you take the lowest estimate of 150,000 new users since December when the raise was agreed. You could say Freetrade is worth approximately another 150 million
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I think there are a few more metrics like number of funded accounts, active users, assets under management, transaction values etc etc. We don’t have sight of any of these so have to make pretty crude guesses based on user numbers alone. Should add that Im not disagreeing with you here - valuation should be a lot higher as a result of the rapid surge in numbers.
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I think you can safely say that the recent 200,000 sign ups will be very similar to the previous 400,000 signups give or take a pound. So if the previous 400,000 in December are worth approximately £883 per person then the 200,000 since December should be worth a similar figure.I don’t mean to be crude
Stop the count ! 
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Was expecting a higher price as well but to be fair the only fair benchmark for sp is the series A’s price. Apples to apples. Crowdfunding is known to be agressive on valuations.
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(I won’t comment on the accuracy of the report as last I was told the details are still confidential)
What we know is that Freetrade entered into these discussions around November at which point the official EOY target was still 277K users.
VCs would have made their offers based on this estimate and probably discounted slightly for the risk of using forecasted figures.
Since then Freetrade’s user base has more than doubled and Plus subscriptions have likely smashed targets.
What’s even better is there will be a crowdfunding campaign in the summer that will see a quick re-rate to a valuation that reflects recent growth 
£35M is a huge amount of money for Freetrade, this should turbo charge the rollout across the EU and increase future valuations even further 
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Off topic but this is also noteworthy from the Techcrunch article
In December 2020, the company generated $1.4 million in revenue.
Don’t ever recall this being mentioned elsewhere. $1.4m in revenue for a month for a company this early in it’s monetisation strategy is decent.
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Hi all
I closed the old, pre-announcement B thread and merged today’s chat onto this thread, so everything post-announcement is now in one place.
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My point being, total users isn’t a great measure, but active users is