Editing Freetrade
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=== Operating expenses === | === Operating expenses === | ||
Freetree, in an effort to boost its platform's user adoption, has implemented an incentive scheme: they are providing free shares - valued up to £100 - to both those who bring in new users through successful referrals, as well as to the new users themselves.<ref>https://freetrade.io/legal/summer-freeshare-offer</ref> These complimentary shares have a weighted average value of £23.35. This means that the cost Freetrade incurs for acquiring each new user under this program is £46.70. The table below presents the average probability distribution of these free shares. | |||
{| class="wikitable" | {| class="wikitable" | ||
|+Free share probability | |+Free share probability | ||
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|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company? | |What's the estimated annual growth rate of the total addressable market over the lifecycle of the company? | ||
|3% | |3% | ||
|Research shows that the growth rate of the global | |Research shows that the growth rate of the global automotive market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product<ref>http://www.robertpicard.net/files/econgrowthandadvertising.pdf</ref>, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>. | ||
|- | |- | ||
|What's the estimated company peak market share? | |What's the estimated company peak market share? | ||
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=== Early-stage investment === | === Early-stage investment === | ||
Freetrade is at one of the earliest stages of the business lifecycle, and the failure rate of companies at that stage is usually much higher than those at a later stage. As of 2022, 57% of companies that are incorporated in the United Kingdom fail within the first five years of the companies incorporation, according to the Office for National Statistics.<ref>https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2020#the-south-west-continued-to-have-the-highest-five-year-survival-rate</ref> | Freetrade is at one of the earliest stages of the business lifecycle, and the failure rate of companies at that stage is usually much higher than those at a later stage. As of 2022, 57% of companies that are incorporated in the United Kingdom fail within the first five years of the companies incorporation, according to the Office for National Statistics.<ref>https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2020#the-south-west-continued-to-have-the-highest-five-year-survival-rate</ref> | ||
=== Illiquid investment === | === Illiquid investment === |