Freetrade raises over £4.5m in biggest equity crowdfund of 2020
- Investment , Crowdfunding
- 15.05.2020 08:30 am
Following 500% growth in the past 12 months, Freetrade, the smart app that makes investing easy for everyone, has raised £4.5m from more than 5,000 people in just four hours. Working with Crowdcube, they exceeded the £1 million target in just 4:33 minutes and raised £3m from existing shareholders before opening the campaign to their customers. Freetrade’s fundraise is the largest equity crowdfunding campaign to be completed in the UK this year and it remains open to investment as the fintech pioneer sets its sights on a £7 million funding goal.
The funds will be used to accelerate Freetrade’s growth, which has already seen new customers jump to 150,000 since the pandemic hit and trading volumes double 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.
“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.”
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.