Freetrade closes £7m crowdfunding round that defies Covid-19 lockdown
- Covid-19 , Investment , Crowdfunding
- 20.05.2020 04:39 am
Freetrade, the smart app that makes investing easy for everyone, has defied the Covid-19 lockdown to raise £7m from more than 8,000 people. Working with Crowdcube, the company exceeded its £1 million target in just 4:33 minutes from existing shareholders before going on to raise £7m in five days. Freetrade’s fundraise is the largest equity crowdfunding campaign to be completed in the UK this year.
“We’d always planned on crowdfunding in 2020 and the meteoric growth we’ve seen this year made us think that was still the right thing to do,” said Freetrade Founder and CEO Adam Dodds. “Still, it’s been incredible to see so many people invest in Freetrade despite the precarious situation the world is in. I think that says a lot about the belief people have in us to provide the best, most affordable and accessible investment service on the market.”
Luke Lang, Co-founder of Crowdcube added: “Freetrade has proven the power of their community to fuel its growth once again. To defy the Covid-19 lockdown and raise £7m from 8,559 people is astonishing and a testament to their vision, team and product. Their record-breaking raise, at a time of deep uncertainty, will undoubtedly provide inspiration to fellow entrepreneurs during these challenging times.”
The funds will be used to accelerate Freetrade’s growth, which has increased 500% in the past year to 150,000 customers, and the trading volumes doubled through February and March when the financial markets were in turmoil. With over 70,000 new customers since the start of the year, Freetrade’s burgeoning community is at the heart of its success. Freetrade now has over 10,000 shareholders following six crowdfunding campaigns with Crowdcube, who have been pivotal in the company’s growth so far.
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.