Very important update on Tue 25th June Crowdfunding

Hey everyone,

I wanted to give everyone a big update on our crowdfunding round on Tue 25th June. All of this is important, so if you’re planning to invest, read on.

First up, the private mode will be longer

We recently talked with Crowdcube. They’ve modelled their expectations for our round and to be absolutely safe and ensure it goes smoothly, they’ve recommended a longer private mode to manage demand. We agree.

So the great news is that private mode will last longer: from 8am-12pm. We go public for everyone on Crowdcube at 12pm as planned.

Remember: private mode is for Freetrade customers (get the app and sign up now!) and previous investors only.

We’re doing private mode in batches

We’ve also agreed to batch up the private mode for customers and previous investors into 8 random groups. Each batch will get a unique private link at 30 minute intervals (8am, 8:30am, 9am, 9:30am, 10am, 10:30am, 11am, 11:30am). Each link will only work for the people/emails in its batch.

We’ll email you today with the time we’ll send you the link based on your batch. We’ll send you the link itself on the 25th via an in-app message - or an email if you’re a previous investor but not a customer.

Each link will only work for 30 minutes so all the batches get equal space. If you miss your slot, you’ll have to wait until 12pm.

:rotating_light:Very important: You’ll only be able to access the page with your private mode link if you’ve got an account on Crowdcube with the same email we have for you (and logged into Crowdcube with that account). :rotating_light:

The rules and limits in private mode

We’re reserving the full £3m of EIS for private mode. We’ve also decided to put in some limits to make sure everyone gets a fair shake. We’ve divided the £3m equally between the 8 batches. That means:

  • £375,000 total limit per batch
  • And we’ve also decided a £5k limit per person

When we go public at 12pm, we remove all limits and if you invested in private mode, you can invest more.

Bear in mind, per Crowdcube rules, you can only make two individual investments throughout the entire pitch i.e. you could do 2x £2500 investments, but not 3x £1000 investments.

Sign up on Crowdcube now

To reiterate, if you’re planning to invest, create your Crowdcube account now with the same email you use on Freetrade/the email we have for you as a previous investor. That’s the only way you’ll be able to access your private mode slot.

Valuation

Our final remaining detail for this round.

We consider this an extension of the crowdfunding on 25th April. So these things are the same:

  • The pitch deck (bar a few numbers)
  • The pitch video
  • The plans for the money we raise

However, we’ve also grown a lot since the last round on April 25th:

  • Our customer numbers have risen to well over 30k
  • We’ve taken our first steps to international expansion
  • We’ve started rolling out our Free Share referral programme
  • We’ve shipped more product features, like Collections
  • We’ve been working on additional permissions from the FCA to become a full-scope firm, which would set us up to be the first stockbroker in the world to offer fractional shares in UK and EU stocks. We have more news coming on this 1st July.

So we believe it makes sense to increase our valuation.

The valuation for the round will be £43m.

This is the pre-money valuation (i.e. the valuation before the money we raise in the crowdfunding next week). The post-money valuation from the round in April was £38m, so there is a 13%, or £5m increase in the valuation from two months ago.

We’ve tried to strike a balance between recognising the growth in the business but also make sure those that missed out last time can get in at a similar price.


We hope everyone has a great day on the 25th and we’re doing everything we can to make it as fair, open and stress-free as possible for all of you.

We think this approach does the trick.

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is it me or this is awesome

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Hi
What is the price of a share?
Thanks for the update!

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Thank you for all of this - seems sensible.

Upon reading I realised my email on crowdcube is different. I have just changed it to match Freetrade, will everything work smootly now?

Please message us via the in-app chat if you want to check this sort of thing.

I managed to get some in R4 and therefore I intend to skip this round, I don’t need to be included in any of the batches of emails if that makes any difference?

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If you’d prefer not to receive emails about the crowdfunding then just let us know via the in-app chat. Otherwise, we’ll still include you in the batches as the number of people who opt out will be too small to make a difference.

I don’t mind getting the email, I was just thinking if there’s limited numbers or something I don’t need to be included

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Hi, thanks for the update.

I understand R5 has 5K limit per person, will this reflect the Reward scheme.

Screenshot_20190621-155139_Samsung%20Internet

Yes the rewards will remain the same because -

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Thanks Alex.

Looking forward to it

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Am I misunderstanding?

We’ve also agreed to batch up the private mode for customers and previous investors into 8 random groups.

The private round is essentially 30 minutes for any given person, at a time that might not be convenient for you.

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It looks like that. Most of the 8-9am crew will be on their way to work and/or dropping the kids off.

Still…they have to try and manage it somehow, since it just did not work last time. You’ll know later today and hopefully be able to work around normal morning routines.

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The last raise was 84p I believe, so this raise is in the ball park of 95p?

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Thanks for the update.

I applied through Crowdcube from this page to see the pitchdeck a few days ago. Still waiting for you to approve it.

I assume the full limit of £25k for this round remains, so the max would be £5k in private mode and then another £20k after 12 noon.

oh btw, my Freetrade account is under Anthony Atherton as that’s my legal name

So who are the unlucky people who have been put in the 1st batch at 8 o’clock when people are on way to work. Lucky am at a time that it should make it easier for me for me to make my investment.

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10:00 for me. Pretty sweet.

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Fractional shares:

Yes it’s good, more useful for EU shares (which are priced in Euros) rather than UK shares which are priced in pence. Only 9 of the FTSE 100 are more than £50 (5000p), and half are under £10. The dearest is DCC at £70. Similarly on the FTSE 250, only 3 are over £40, and nearly 200 are under £10.

Contrast that to the EU Stoxx 50, where all but 8 are over €10, and a third are over €100.

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11:30. Who is up at that time on a Tuesday?! :joy::rofl:

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