Based out of London, Freetrade is a challenger stockbroker that brought mobile-first, commission-free investing to the UK and Europe. Recently, the UK company announced that it has raised a record-breaking £8,474,600 (approx €10M) on day one of a crowdfunding round at a £650M (approx €767.99M) valuation.
Freetrade first raised crowdfunding in 2016 and, since then, has raised a total of six rounds, alongside a Series A and B round led by growth investors Left Lane Capital and Molten Ventures (formerly Draper Esprit).
The current fundraising was an exceptional growth for the UK company. Since Freetrade’s last crowdfunding round in May 2020, total registered users on the platform have increased from approx 150,000 to over 1 million, representing a nearly 600 per cent increase in 18 months.
Client assets have also exceeded £1B, helped by the launch of new subscription accounts, including ISAs, Freetrade’s Plus membership, and the Freetrade Pension.
Record-breaking crowdfunding for European launch
Freetrade officially launched its seventh public crowdfunding round yesterday, on 25th November. The company says, “Yesterday we set a new record as the first company on Crowdcube to raise £6M, £7M or £8M (€9.5M) in less than six hours.”
Freetrade reached £5M in private mode from previous investors and those who had signed up for early access. After less than six hours of the round being open to the public, the company hit £8M with investors from 63 countries taking part in the round. The UK portion of the raise is now closed to investment.
This is the first time the company opened its crowdfunding to European residents as it prepares for its European launch. The round was raised at a share price of £9.2499, an increase of 138 per cent since the company last raised funding in its Series B round in March 2021.
The funds will be used to support Freetrade’s international expansion and development of its proprietary technology.
Adam Dodds, Founder and CEO of Freetrade, says, “This crowdfunding round represents a significant milestone for Freetrade. We’ve built a passionate community of shareholders through six previous rounds, and we’re proud to be able to open up a new round today. As we move into Europe and beyond, we’re committed to keeping our community involved every step of the way.”
About Freetrade
Founded in 2017 by Adam Dodds and co-founder Viktor Nebehaj, Freetrade is an app that makes investing simple and free with the aim to get everyone investing. The company has brought low-cost investing to over 1 million users, making it one of the largest retail brokers in the UK.
Freetrade offers commission-free trading through its own built engineering system called “Invest by Freetrade” that allows the platform to execute users’ trades much cheaper and faster than using third-party solutions. It is an FCA-regulated stockbroker and member of the London Stock Exchange.
The company has nearly 13,000 shareholders through crowdfunding. The company has started expansion in new markets – the Netherlands and Ireland – and plans to be available everywhere in the EEA soon.
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