What we know about the the 3rd crowdfunding round so far (FAQs) (Open Wiki) 📋

[anon2636484]

Since the next crowdfunding round was announced, the team have shared a lot of details about the next crowdfunding round in the dedicated topic for questions.

That topic’s already 99 posts long, which takes a lot of reading! So I’ve created this open Wiki (which anyone, who’s been around for a while, can add to & edit), to share the answers to frequently asked questions.

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The crowdfunding campaign is now finished

Freetrade raised 620% of their goal in less than 29 hours

The largest investment was £175,000

They crashed the Crowdcube website

All the details are here -

https://www.crowdcube.com/companies/freetrade-2/pitches/b3M2Ql#documents

And Forbes covered the raise -

Britain's Take On Robinhood Is Crowdfunding $1.3m To Bring No-Fee Trading To...

If you missed out people are dropping out so it might not be too late..

@freetrade_cal

There will also be people who missed out that Crowdcube can swap in. Contact them if this is you.

Here’s all the details that we knew beforehand

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How will I access the crowdfunding page?

You can access the page via this link https://www.crowdcube.com/companies/freetrade-2/pitches/b3M2Ql.

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When is the next crowdfunding round starting?

The round will open at 1pm 16th May!

We don’t want any of you to miss out, so the first 24 hours will be a closed phase, for community members only (that’s everyone on our waitlist).

We’ll email all our community members with a private link at 1pm 16th May and we’ll keep it closed before opening up to all Crowdcube investors the following day.

We’re looking to fill our target as soon as possible and we overfunded in our last two rounds, so those 24 hours are your best chance to get in before the round goes public.

Details from this blog.

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What're the terms?

Target: Raise £500,000
Equity offer: 2.70%
Pre-money valuation: £18,000,000
Tax relief: EIS

Details from this post.

Note - the pre-money valuation from the previous round was £4,000,000, more details here.

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Will overfunding be allowed?

@Viktor

In case there is very high demand, we’ll allow for overfunding. The goal is to make sure everyone from the Freetrade community (both investors and waitlist members) can invest! That’s the reason we’ll do an early closed phase for the excellent people who have already put their trust in us and come on board!

@Freetrade_Team

We’ll only be offering a certain amount of equity. We will allow overfunding in the case that there’s demand (let’s be honest, there’s going to be demand) - but nowhere near enough to acquire the company!

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What's the maximum amount that Freetrade will raise?

@adam

We have set a cap on overfunding at £3.1 million and the campaign will close automatically at that point.

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What will the share price be?

@Viktor

54p / share

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How do I access the investor deck?

@adam

Once we go live on Crowdcube you will be able to access our pitch video and investor deck. The investor deck is 50 pages and includes financial forecasts. To access the investor deck you will need to have a Crowcube account, so if you haven’t already, I’d sign up for Crowdcube now in case you have any issues on the day.

As an investor in this round, you can request access to the documents here.

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What are the rewards for new investors?

Table from this post.

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Will Class A shares be available?

@adam

The best reward being A shares if you invest over £20k.

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What rewards have existing investors earned already?

• Round 1 investors will be acknowledged on their profile screen.
• if you have the round 1 reward of a free tax-wrapped account for life, that will be an Alpha account now.

(source for the above)

@Viktor

We’ll communicate about these rewards when the round 1 and 2 investor onboarding is underway. Those 1,200 people will be the first to be onboarded.

And don’t forget that..

@adam

If you invested in our first round, it would have been at a sub £2m valuation. This round will be at c. 10x that valuation in less than two years. You would have received SEIS tax relief (if a UK resident) so are sitting on an investment with a roughly 2,000% return to date. That’s the best reward for investing early!

We also had rewards in our first two rounds, which were arguably better and were received at a lower level of investment than will be in the next Crowdcube round.

And finally, we hope you will follow on and invest again and get those new rewards!

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Do existing investors get pre-emption rights?

@adam

We’ve used the model Crowdcube structure in previous rounds, where investors have either A or B shares. Both classes of shares are the same except B shares do not have voting or pre-emption rights. You get A shares by investing more (different threshold depending on the round).

In this round, pre-emption rights are irrelevant as all existing investors have the opportunity to invest pro-rata, or more or less if they want.

In the future, we plan to still give all existing shareholders a chance to participate in future funding rounds. You could compare this to Monzo, who only offered B shares (ie no pre-emption rights), but still offered the small crowdfunding investors like me a chance to participate in their last round along with institutional investors.

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How do I get the investor badge (available for existing investors already) on the forum?

Victor has shared the steps here.

If you’re a new investor then Freetrade will assign you the badge after this next round is complete.

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Can Crowdcube investors transfer shares?

Freetrade’s CrowdCube Fundraise - #47 by HannahCrowdcube

Freetrade’s CrowdCube Fundraise - #51 by HannahCrowdcube

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This topic has been closed to avoid users posting replies (which would stop the Wiki being bumped & users seeing that changes have been made, when it’s edited), if you have any questions about the Wiki, please send me a DM.