A slump in trading by retail investors has seen the value of app Freetrade drop by 65%.
Backed by London-listed Molten Ventures and New York fund Left Lane, the new reduced valuation for Freetrade was revealed ahead of a planned crowdfunding raise later this year.
Adam Dodds, chief executive, said: “We’ve seen the longest bull market in history come to an end and valuations of public companies fall.
“Freetrade is no different. We’re now operating in a different market environment where we need to prioritise profitability.
“We’ve arrived at a valuation for this round in line with the declines in valuation we’ve seen with public market peers.”
The app, which has lost money consistently, posted another deficit of £3.3mln in the first three months of its latest yar on revenues of £4.7mln.
It is now being valued at £225mln, compared to £650mln when it was last valued in 2021.
Spread bet firm CMC Markets yesterday said trading since March had dropped by between 15-20% on its platform.
Freetrade launched on the back of the promiser of commission free-trading for investors but started to cut back last summer when it announced a round of redundancies.
Higher savings rates and uncertainty over the health of economies across the globe have prompted investors to turn cautious and reduce trading, according to traders.