We're crowdfunding on Thursday 14th May šŸŽˆ

The company is obviously public, but I don’t want to associate myself with it on a public forum.

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You don’t want to associate yourself with your investments?

Why are you investing in them then if you have no faith in them?

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A J Bell IPO’d at 700 million with about 200,000 customers. I can guarantee every one of you guys that in 3-5 years Freetrade will be worth over a billion. I see them IPO at 2-3billion once they have conquered Europe

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Not necessarily true - it depends on the terms of the NDA - whats public knowledge isn’t necessarily the full extent of the NDA. Ive signed several that elements of whats covered become public knowledge but still cant say anything as my companies involvement isnt public.

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Will this be the last crowdfunding round?

I assume with a large series B there may not be a need to go back to crowdfunding but I’m not sure.

With valuation in mind:

R5 ~ 43M // 30,000 customers/ building their platform.
R6 ~ 145,000 customers/ Have successfully built Invest by Freetrade which is regulated by the FCA/ Introducing Fractional shares. We’ve already seen the benefits of this with instant trades being free ( a pleasant surprise).

Just guessing I would say Freetrade would be at least worth 125M. I don’t know exactly what this equates around the 2.75-3.00 mark?

Going for a gamble at £2.8

But remember this is unrealised value, and as a few have mentioned this valuation could go the other way just as quickly.

I have a lot of faith in the management at Freetrade. They seem to be working on the quality of features/ platform as opposed to rushing. This is what I’m confident will make Freetrade succeed. One comment put it well in saying that Freetrade has something ā€˜different’ about it that makes it seem genuine. As though Freetrade’s mission is to provide a service to benefit customers and not just make money. The team video they played on the last zoom call really showed that everyone who works there feels part of a community- and so do i. Just look at this forum for example.

I’m not kidding myself, investing in Freetrade does have higher risks associated but I genuinely believe they are doing good work. So if it does go pear shaped, which I highly doubt, I can rest assured knowing at least they tried to make things better for people.

I’m relatively young and have already completely changed the way I look at my finances, and those who I’ve introduced to Freetrade are slowly starting to change. It’s quite nice to see and all thanks to Freetrade. It feels like only yesterday I was on that massive waitlist for Freetrade and it’s already come such a long way.

Good job guys and I will be investing in the next round :+1:.

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I worked there.

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If Funding circle and AJ bell can IPO why can’t Freetrade eventually if they continue to grow and scale well :man_shrugging:t2:

It’s not like this is some kind of company lottery which gets chosen by the IPO gods…

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@Kezberg, in case you missed it, I believe he’s @out

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I’m actually hoping that while yes an ipo is fantastic but perhaps there are exit points in the future at institutional raise points where the new share price that vc’s buy in at also allows for some existing shareholders to sell to that vc at that same price if they choose to do so.

I’ve invested in every round since round 2 and at some point in the future I would probably start selling (if it wasn’t through an ipo) by selling round 2 shares first opportunity then round 3 round 4 and so on to keep within any eis relief if ever that becomes an issue for capital gains :joy:

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Thanks for highlighting the comparable.

Probably a couple of things to note. Looking at AJ Bell’s prospectus, I note that they had positive profit before taxes for the prior 3 years before listing. Hence, AJ Bell may not have been valued the same way given that Freetrade is currently unprofitable.

Secondly, the failure of WeWork’s IPO attempt last year signals that public shareholders no longer tolerate applying high multiples to high growth but unprofitable companies. Unclear of the impact to Freetrade given that there’s no immediate plans to IPO but something to consider.

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Breaking fake news!!!

Freetrade may IPO in 2024-25.

Before is likely premature.

Just saw a pigeon fly in the opposite direction to the sun bending just over the fat white tree

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I invested in last years round. I am curious to know if you guys are going to do a push in marketing. I see a lot of Trading212 ads on YouTube and on the Tube (in my pre WFH days). But they seem to get a lot of exposure.
Also there might be a bit of a pullback with people buying stocks with a recession on its way, and general public caution. Would there be way way to offer some instruments to play the On markets volatility in these turbulent times ? Just a thought!

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If you read there update they say what they intend to spend the money on (marketing is one of them)

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I think Freetrade have a great product, and so I’m quite interested. Having never invested in an unlisted company before, any tips on how to find information? I’m struggling as there isn’t the usual stuff like an investor relations.

Will the pitch deck be available ahead of the private mode windows on Crowdtube? (This might be a silly question, as I’m not clear what ā€œprivate modeā€ is!)

The most recent accounts available are made up to 30 September 2018. I assume a lot has changed, but for what it’s worth:

  • (Unsurprisingly) show a loss of Ā£1.165 million for the year
  • Net current assets Ā£2.662 m

Yes, pitch deck is normally available, and there is a Q&A section on Crowdcube as well. After the raise, articles of association are provided for review during the cool down period.

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I’ve invested in a couple of companies on Crowdcube and Seedrs and normally the listing is made available either in private mode (where you have to be invited first) or open to anyone mode. Once you have access to the listing you can then request access to more information, investor deck, financial etc. This is fine if the company raising money is seeing ā€˜normal’ demand levels, this gives the company time to grant access to financial data and pitch decks etc. The issue with the last couple of FT Crowdcube rounds is that the demand was so great they raise money so quickly you didn’t have enough time to read everything before they had raised all the money they need and you miss out (google FT and crowd funding, faster ever 1m raised) so this time Adam mentioned in one of the AMA sessions that they will releases the financials and pitch deck before opening the round to give people a chance to see it and then invest.

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That’s one of the main reasons I actually decided to invest in Freetrade. The word you are looking for is they have the ā€œwhyā€. There is a Ted talk by Simon Sinek explaining exactly that - How great leaders inspire action | Simon Sinek - YouTube

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ā€œPeople don’t buy what you do they buy why you do itā€ this is a great TED talk and I think helps explain what I was referring to above. Couldn’t agree more @Geo0rgi and why I’ll be topping up again.

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Why Crowdcube again after the mess of last time?

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What mess? The demand far outstripping supply? Yes, it’d be terrible if that happened again.

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