So the first lot of funding will be taken out of banks in about 7 days ish.
But then the next lots in july?
If someone confirms that the money will be taken in July then I’ll invest more. Anyone from freetrade?
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These questions are from that thread also,still to be answered.
I could not find anything on my last three questions which I believe are critical. Could you please shade some light on those:
• Can you confirm this round is a pure primary offering? (would like to make sure you are not offering some early liquidly to Draper Esprit at a nice 3.2x uplift in less than a year, funded by retail investors)
• Is the management team planning to take any money off the table? (looking at FY19 report, page 24 – the 354k share options with a strike at £0.016 that vest in 2020)
• Can you please provide a detailed summary of expected use of proceeds?
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Me personally,I would be pissed if if Draper Esprit were given preferential treatment and as regards management taking some cash,well they deserve some if they want/need it.
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The crowdfunding money is all EIS eligible which means it must be primary.
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Some ‘Plus’ teasers on the Crowdcube discussion page if anyone’s interested …
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I can’t see anything other than the price?
Can you share on here please?
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If the round goes the full length of time then yes it will be taken in July. However it’s up to 6 mill already & I believe the link not has been set as 7 so is likely to finish early.
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Sounds like more will be revealed on ‘Plus’ in the Tuesday AMA with Adam…
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By the looks of what is being written on the crowdcube discussion threads; Plus is going to be £9.99 a month. It’s still unclear what features this is going to encompass right yet but sounds like we are going to hear more soon.
Personally I will want to find out more about plus before considering making an investment on crowdcube during this round. Year end estimates for 2020 are suggesting 263k active users and 25k Plus users so 9.5% uptake. Hopefully we will find out more information before the end of the crowdcube round.
I don’t mind saying that I have around £14k in my freetrade portfolio (so significantly higher than the average account going on the pitch deck) and £120/year for premium features seems expensive to me. If you get the ISA packaged into that it becomes an additional £6.99/month on top of the usual £3/month ISA fee which isn’t quite so bad. I am less bothered by a lot of the rumoured features regarding order types and stocks universe and I am not planning on opening a SIPP either so perhaps I was never going to be part of the target market for this anyway. Obviously as we don’t know the features yet I can’t say for certain.
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We can all hypothesize what plus account features will be like 
I wonder if they bring some sort of autoinvest ( not that i need this but for beginner investors this can be a win for them) 
I’m hoping they take this approach, a single fee that across the entire platform like how Vanguard approach their fee (though there’s is % based).
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A few thoughts on this
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For EIS the newly issued shares must be used to grow or develop your business.
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Freetrade is ”raising with the aim of supercharging our growth, allowing us to grow engineering & marketing and continue expansion into Europe.” as it says on the crowdfunding pitch page. If they raised money to buy out a existing investor then they’d have no money for this. Plus wouldn’t be EIS eligible.
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Crowdcube and Freetrade would have to declare if the funds were being used to pay off loans, or used to exit existing shareholders.
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Draper Espirit will be in this for the long haul. Adam mentioned ”You must check out the AMA next week with Simon, their CIO and cofounder. Sometimes I think he can explain the opportunity we have better than me, at least to prospective investors.“ in a reply on Crowdcube. So maybe worth asking in that AMA on what their ideal exit would look like, whether they’ll reinvest, etc etc.
Hope that helps.
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No, I did say that. And it wasn’t in the deck, sorry. We’ll share very soon, my mistake. Looks great!
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It’s likely to be centred around Advance orders (limit & stop) maybe GTC Orders and some kinda drip feature. And priority access to new stock release. If it all incorporated with ISA allowance. I think that would be a good value proposition for £9.99
Excluding fractional shares, if they add some other feature beyond those I mention for that price. That would really be a game change. It would be a nice shock value to shake things up in the investing space. I’m intrigued.
I can think of a few things that new investors don’t need, which I know other brokers charge for.
- Real-time prices
- Depth charts
- Stop-loss & take-profit orders
- Some kinds of company announcements
- Some company details
The last two could be more like Simply Wall St’s pricing where you can see everything, but only for a certain number of companies each month.
I really like the idea of keeping the base product free, simple, and intuitive for the beginner investor. Then charging a reasonable subscription fee for more advanced features.
Other brokers will try to offer everything and the kitchen sink for “free”. That will just confuse new investors and scare them off. Some will like jumping in the deep end, of course, but I suspect most won’t.
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Agreed. Keep the basic account app as basic and simple and easy to use as is possible. Anyone serious about investing would be happy to pay for features and most of those who are not would be frightened off. However curiosity would make them try the perhaps 7 (?) day free trial which would sow the seed for when they want to do more
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Other platform that are direct competitors of limit/stop orders give this for free so I think it should be more than this for 9.99
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That’s fair and I could be way wrong. But I look at it differently. £9.99 has a base could give you more new features on top of the ones that FT release next month. For example if I decide to get the latest iPhone. My previous iPhone can do some of the stuff my new iPhone can do and it cost less. But purchasing my new iPhone allow me more possibilities. newer update and capabilities. That’s the choice we will all decide as a user whether we are investing for short or long term.
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Why don’t you need it?