Series B announcement MEGATHREAD

[hookedinvesting (@hooked_investing(IG))]

(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

[saf]

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.

[Freetrade_Team]

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.

[timeinthemarket]

@Casperthefriendlyghost

I would say users are the most important measure

My point being, total users isn’t a great measure, but active users is

[timeinthemarket]

@Casperthefriendlyghost

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.

I would say quite a few pounds, because a lot of them would have been from GME and therefore more likely to be short term or day traders, which FT is not designed for

[olivug]

Is that the full year or just December ?

[Casperthefriendlyghost (Jock)]

Hence the reason I took the lowest estimate 150,000
Any way I’m estimating that at the year end Freetrade will be a unicorn,so it’s all irrelevant to me. I’m not selling for less than £20 a share

[olivug]

Agreed.
We need to be patient.
The only question is how they’re going to price the crodwfunding. Wanted to load up a few more shares.

[saf]

That quote was lifted from their article without any modifications. It’s sounds like a month to me. If it was a year, then they’d say year to December?

Saying that, the language recently used when reporting on Freetrade is far more ambiguous than it needs to be.

[PoemofXtasy]

Have you a new job title? If so congrats

[Gaz92]

How long will this opportunity stay open? I know I’m good from Round 2, but I’m not sure the EIS length has passed since Round 3.

[Freetraderajb]

The price might be disappointing but it’s based off a previous date and the current value of the shares which im guessing is what most people care about is going to be above this figure. In reality this price is most disappointing to someone who is looking to sell their shares, thankfully I’m not in that camp but I do feel for anyone who needs the cash now given current circumstances.

[LukasH]

https://www.bloomberg.com/news/articles/2021-03-23/robinhood-files-confidentially-for-u-s-ipo

This just came in and might significantly boost Freetrade‘s share price in the next crowdfunding round.

[lizmcp]

It’s a lot of dilution at this point, but otherwise doesn’t really matter.

[jack]

Very good to see!

[TinyDancer]

That’s overly, overly, overly simplified. We have no idea how many active users, what the customer lifetime value is, what % of users are Plus members etc.

[Casperthefriendlyghost (Jock)]

Why?

[szb (Sergey)]

Their post-ipo price might follow ABNB trajectory. With all their clients trying to get a piece of the pie.

[szb (Sergey)]

That is why we get agressive crowdfunding valuations

[Wulfy]

Give it another couple years then let’s ipo and we can ride the ipo wave up and up and up as freetrade users get the opportunity to stick freetrade themselves in a person’s isa or sipp