Today UK-based fintech Freetrade, the smart app that makes investing easy for everyone, has defied the COVID-19 lockdown to raise €7.8 million from more than 8,000 people. Working with Crowdcube, the company exceeded its €1.1 million target in just 4:33 minutes from existing shareholders before going on to raise €7.8 million in five days. Freetrade’s fundraise is the largest equity crowdfunding campaign to be completed in the UK this year so far.
Freetrade, founded in 2017, is a challenger stockbroker bringing mobile-first, commission-free investing to the UK and Europe. Its mission? To enable ordinary people to grow their savings and benefit from the global economic growth of public companies. In the past 3 years, the startup has already built up 150,000 customers, and grown its team to 60 people. The app allows people to buy stocks like Amazon, Greggs, Tesla, Fevertree, and Apple and can use an ISA to invest up to around €18,000/year in a tax-efficient account.
In 2019, the startup raised €13.7 million, including a Series A round via venture capital firm Draper Esprit. In addition, Freetrade now has over 10,000 shareholders following six crowdfunding campaigns with Crowdcube, who have been pivotal in the company’s growth so far.
“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 £7 millon 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.