Investment app Freetrade has slashed its valuation by 65% as it prepares for a fresh crowdfunding campaign in June.
The move reduces Freetrade's valuation from a high of £650 million to £225 million, leaving previous crowdfunders licking their wounds.
In mid 2021, Freetrade signed term sheets with new investors to raise money at a £700 million valuation However, in January 2022 the deal was killed off amidst a wider dive for the tech sector.
The firm eventually raised £30 million from existing backers through a convertible loan note in May that year.
By September of that year, Freetrade kicked off a redundancy programme that would see 15% of its 300 staff shown the door in an effort to preserve its cash runway.
In March it also introduced annual subscriptions alongside changes to its foreign exchange fees and monthly subscription fees.
In a post promoting the upcoming crowdround, the firm says: "Despite headwinds in 2022, our business model continues to prove its resilience. We’ve reacted to difficult economic conditions by cutting costs and focusing on our core market."
For Q1 2023, Freetrade posted revenue of £4.7 million a 25% increase over the previous period and more than halved losses to £3.32 million from £8.9 million in the comparable time frame.