UK-based Freetrade secures £4.5 mn in equity crowdfunding

Source: IBS Intelligence 2020-05-18

Smart money app, Freetrade has secured £4.5 million from around 5000 investors in under four hours on Crowdcube. Earlier, the company rose above its £1 million target and raised £3 million from existing shareholders. Freetrade has stated that the funds will be used to speed up its growth.

“Crowdfunding has played an integral part in our growth since day one,” said Freetrade CEO and Founder Adam Dodds. “Along with funding, it has brought us a loyal community that has been vital in spreading the word about Freetrade. This latest round will help us build on the tremendous success we’ve had over the past couple of months, as we expand and develop new products.”

The company is currently looking to surpass its £7 million funding goal. Freetrade has seen a jump in its new customers, with trading volumes doubling during the pandemic. It now has over 10,000 shareholders following six crowdfunding campaigns with Crowdcube.

Freetrade is a challenger stockbroker that offers mobile-first, commission-free investing to the UK and Europe. It is FCA-regulated, FSCS-secured and one of the newest members of the London Stock Exchange (LSE).

Darren Westlake, CEO and Co-founder of Crowdcube, added, “Freetrade continues to impress investors with its unique proposition and platform. Following extraordinary growth so far this year, it’s a really exciting time for their shareholders, both new and existing, to be part of their ongoing success and their mission: to make investing simple and accessible.”

The app allows people to buy stocks like Amazon, Greggs, Tesla, Fevertree, and Apple and can use an ISA to invest up to £20,000/year in a tax-efficient account. In 2019 they raised $15m, including a Series A with VC Draper Esprit.

UK-based Freetrade secures £4.5 mn in equity crowdfunding

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