UK Fintech Freetrade to Return to Crowdfunding on Crowdcube on May 14, 2020


UK-based Freetrade, a Fintech firm that offers a free-to-use investment app that makes it simpler to invest, has revealed that it will again be seeking additional capital via crowdfunding, beginning on May 14, 2020.

In 2019, The Freetrade community reportedly invested a record £1 million in 77 seconds.

In fact, Freetrade earned a bit of notoriety when the first attempt to list the offering caused the Crowdcube platform to crash.

As mentioned on the Fintech company’s official website:

“On Thursday 14th May, we’ll raise again to supercharge our growth, and we’d love you to be part of it.”

Commenting on why the firm is seeking more funding, Freetrade’s management says:

“To supercharge our [steady] growth. It’s been our plan to keep an annual cadence of crowdfunding, supplemented by venture capital (VC) rounds that grow as we do.” 

The Fintech firm confirmed that it secured $15 million in capital last year, which included a Series A with VC Draper Esprit.

While acknowledging the negative impact that COVID-19 may have on the Fintech space, Freetrade said:

“The Coronavirus crisis naturally made us revisit our assumptions and question whether we should change the timing of our planned crowdfund.”

The Freetrade team added:

“We’re fortunate to be in a business that has been positively impacted by the current market conditions. We’re seeing record signups, customer deposits and investment activity on a daily basis.” 

The company claims that it has grown (during COVID-19 crisis) from 25,000 customers to nearly 150,000—an increase of 500%.

The Freetrade team confirmed that potential investors will be able to view the company’s share price and valuation via its pitch deck on the Crowdcube platform.

The company will also share more information on the community forum ahead of the raise, so prospective investors will get a better idea of where the business is and how it plans to move forward. Freetrade said it would be releasing full pitch documents.

Early private access will be available.

The company noted:

“[Freetrade] investors in previous rounds will get access at 9 AM, followed by customers at 11 AM. The round will then open to everyone at 1 PM. We’d recommend all prospective investors sign up with Crowdcube in advance.”

Freetrade’s round will reportedly be eligible for the Enterprise Investment Scheme (EIS).

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