Freetrade Returns to Crowdcube Tomorrow to Raise £5 Million

Challenger stockbroker app Freetrade is returning to the pages of Crowdcube to raise capital once again.

The highly popular company topped their £500,000 crowdfunding goal in May in about 12 minutes.

Back in April, Freetrade attempted to launch an offering but Crowdcube’s servers struggled with demand. While frustrating for investors (as well as Crowdcube), it is a bit of a badge of honor.

It was reported that Freetrade “generated the highest number of investments per second ever as the system worked 4X harder than any previous effort since the start of 2018.”

Staffed by former Googlers and other professionals, Freetrade is “poised to transform the investing landscape with free trading.” They are a UK regulated company that plans a European expansion.

To quote from a blog post by Viktor Nebehaj, Head of Growth at Freetrade:

“Right now, we think the UK investing industry is broken. Commissions and fees are high (up to £12/trade) and the big platforms are clunky, desktop-first, non-transparent and cater primarily to veteran, middle-aged investors. All of this makes it harder for millennials to invest … UK stocks and ETFs will be available from day one, and US stocks will follow soon after, all tradable with no commissions.”

And that is why they call it Freetrade – no commissions.

In another blog post, Freetrade provides some additional details of the crowdfunding offering.

First, the offering will be live on Crowdcube from 8AM to 12PM GMT tomorrow, Tuesday, June 25. This will be private mode only so if you are interested in getting in early you must download the App.

At 12 noon tomorrow, private mode will be lifted.

Freetrade says they are reserving the full £3 million EIS for private mode – a big incentive to get in early if you want to invest.

There is a £5000 cap per investor.

While Freetrade considers this round as an extension from their spring crowdfunding offer, pre-money valuation has increased to £43 million from a post-money valuation of £38 million – a 13% increase.

Freetrade reports they are working with the FCA to become a “full scope firm”. They want to become the first Fintech forward stockbroker anywhere to offer fractional shares in UK and European stocks.

Obviously, Freetrade expects demand to be high. Let’s see if they can keep the investor interest magic going.

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