Not at all! You’ll be able to invest again.
I think the in forum icon should be different…perhaps a “CC” with a clown nose for the previous round! I would attempt to make a mock up but it would take far too long!
I got big concerns previously about pre emption rights and freetrade team assured that they would like us to participate in future rounds regardless of B class shares.
@Viktor Thanks for confirming that this round investors would be able to invest again in June as well.
Surely if you are growing at 12% per week, plus £2m more in the bank, means in 5 weeks valuation will be necessarily higher?
@adam, due to sudden closing of this round , didn’t get a chance to have some meaningful discussion, Q&A sessions with FT team. Are you going to have a webinar kind of session where atleast new investors can talk with founders and ask questions ?
Note on EIS eligibility and advance assurance:
Freetrade has been eligible for SEIS and then EIS from the very start and all of our crowdfunding investors that were eligible to claim this type of tax relief have been able to do so.
HMRC provides a service to companies for obtaining “advance assurance” or “AA” on eligibility for EIS before an investment round, so that investors can feel assured that they will be able to claim the relief before investing. We’ve applied and received this before, which we included in the pitch documents.
That said, there is no requirement to obtain AA. If a company is eligible, they are eligible regardless of an AA letter.
As we have been confirmed as eligible before, it follows that we are still eligible unless we now violate the criteria. We haven’t. In fact, we have to keep following the EIS rules for three years after the issue of shares otherwise our existing investors would lose the relief. There are limits on the amount of EIS available though:
- There is a limit of £5 million per 12 month period
- There is a limit of £12 million in total over the life of the company
There are rules for EIS investors as well, such as how long they need to hold the shares before selling and still maintain the tax relief. This depends on your personal circumstance and you should seek your own tax advice.
You can read more here on the EIS scheme and the rules : https://www.gov.uk/guidance/venture-capital-schemes-apply-for-the-enterprise-investment-scheme
Any discussion beyond the facts stated above would be best posted on the Crowdcube pitch page/forum.
Feel this is the best solution for everyone but if there both going to be classed as round 4 I.e April and June raise they should be at the same price per share.how can you have someone in April paying 86p and then say you up the price to over a pound in June and there both classed as round 4 investors.Plus the rewards need to be the same.
We had an event on Tuesday in advance of the round for this exact reason. We’ll do something similar before any further funding round and if you want to meet the team we have a community meet-up every month with pizza and drinks. So far they have only been in London but we’ll soon be doing some in other UK cities. Hope to see you there!
But it’s not like we closed this round suddenly. It was up for way longer than it would have been if there were no technical issues preventing smooth investment.
If you have any specific questions on the round, I’ll still answer any questions posted on the Crowdcube forum/pitch page.
@Drew Let’s assume if crowdcube and FT both allows additional funding now. Then you won’t get EIS so effectively loss of 30% (technically it is 42% as you would be getting £30 tax credit on £100 investment ) and provision to offset up to 45% (based on personal tax situation) in case of wind up/losses as well as unlimited capital gain tax free benifits. I have seen lots of cases where investors didn’t buy outside the shares even though the next round of price was more than 50% due to above reasons.
So it is better to invest in June even if it is a slight higher valuation. Of course if you get same price then it is a bonus . However looking at current demand , growth and additional buzz due to current issue everyone is talking and we will have additional FT users before June funding round, it seems that it may be higher
@adam, thanks for offer. As a new investor and new FT member , I wasn’t aware about such events. Good to know. FYI, I am currently using HL so for sure looking forward to start using FT in full capacity. Do you have any plan to support SIPP?.if yes then it will drastically increase the FT’s topline and bottom line:-)
Will the investment from this round and June round be aggregated to work out the level of perks?
Yeah I understand that just a bit gutted cause I was one of the 1st on the link there but mine crashed and I couldn’t get it back up.I no how quickly freetrade are growing and that there price will no doubt go up.Least next time hopefully everything is fixed to deal with the load which will no doubt be even more than yesterday.
We’ll let you know nearer the time.
FT is also better off by the circa £2M April raise. That cannot be ignored.
Don’t understand why it’ll be part of the same round, as multiple people have said above… I’d hope the company is more valuable in 1+ months time.
Not sure why no one has answered this concern
To be clear, it will be a distinct round. The fourth round on Crowdcube is now closed.
The price per share will be different.
However, given how close it will be, it is not the same as previous rounds that were raised in different years. We’ll have the same video and won’t change the pitch much. Rewards will be the same, should feel pretty similar tbh.
We hope to have many more customers by next time and will have lots of progress on making the product better.
Great, thanks for answering Adam!
Having invested in the second round what seems like a lifetime ago, its crazy how quickly the momentum has built in the last 12 months! Great leadership shown over the last couple of days in particular, in what have been unexpected circumstances!
Out of interest, how many minutes did it take to raise the £1.978m?!
I was on from 11:40 constantly refreshing pages and getting most of the way through, but failed.
I’m a customer but a new investor. I’ve registered my interest on the CC pitch page for shares at the same price from those who are selling… but if I miss out and have to pay a higher price per share I’ll be mightily pissed off
I dont think they can accurately tell. It crashed from the outset and people were continually trying to get it to work for an hour. If it had worked I would suggest a few mins max.