Freetrade reduces pre-money valuation to £225m for upcoming Crowdcube fundraise

Freetrade, the stock trading app, is lowering its pre-money valuation by 65% in anticipation of its upcoming Crowdcube funding round, down from £650m to £225m. Adam Dodds, CEO and founder of Freetrade, acknowledges that this decision isn’t surprising given current market conditions. Dodds states that Freetrade must prioritise profitability in a changing market environment.

Despite the lower valuation, Freetrade is performing well. Its revenue in Q1 of 2023 is at an all-time high of £4.7m, and assets under administration are £1.4bn. Additionally, the Q1 loss for 2023 was £3.32m, which is less than half of what was reported in the same period last year. The company is set to reach profitability in 2024 and projects £22.5m in revenue for the full year 2023 with a Standard or Plus paid subscription. These factors contribute to Freetrade’s strong position as a business.

Over the past few months, Freetrade has released its first Autopilot investment feature and a Swedish-language version of its app, in addition to obtaining EEA authorisation. In April, the company increased its monthly subscription prices but added annual plans at existing prices for long-term customers.