Lucky you to have known about Freetrade as early as in R1, I am genuinely jealous!
I believe a valuation of circa Ā£40-50m in R4 would be quite prudent if it happens before the end of Q2 this year. In the future, the decisive factors for further valuation increase are likely to be Freetradeās user growth and income generation (the latter mostly).
Unlike Uber and similar marketing-heavy tech firms, I donāt see (or rather hope not to see) Freetradeās operational expenses rising faster than the revenues in the mid-term and I would be very surprised if it is not profitable within the next five years or so considering the potential scalability and the Teamās utter dedication to building this service.
By then, should all go well, I hope for a Ā£1bn valuation by 2024 and maybe a potential IPO exit route within another three years or so.
In either case, none of this is based on any data, only my personal investorās biased thinking. I simply want the best quality retail stockbroker and, just as any other community member, a healthy growth in the firmās user satisfaction, valuation, and world-wide recognition.
Vlad yes I think I was lucky to get in early and in hindsight wished I went with Ā£3k worth which I nearly did. Will be interesting to see it continue to evolve.
Looking at the actual value of freetrade has been on my mind lately as R4 is approaching. Sadly I only recently heard about freetrade, but am seriously considering investing.
I like most people here think itās going to chance the game.
Butā¦
What do you think are the main challenges for freetrade?
Do you think there are any problems with the model?
Potential competitors I think will be the main one. From a position of nobody really doing the same thing thereās now a few on the horizon (Iām including Revolut but nobody knows what theyāre actually planning) and the old guard possibly countering by lowering charges. But none of them will be as good
Is there any topic at the moment where Brexit isnāt listed as a challenge? EU expansion depends on our relationship with the EU