Biggest of 2020: Fintech Freetrade Tops £4.5 Million on Crowdcube

Fintech Freetrade has raised over £4.5 million in just four hours raising capital online via Crowdcube. Currently, the offering is displaying £4.76 million (~ USD $ 5.8 million) from 2595 investors. The £1 million hurdle was collected in just 4:33 minutes. Freetrade raised £3 million from existing shareholders before opening the campaign to their customers.

Freetrade revealed it was returning to the investment platform earlier this month and started accepting registrations for the crowdfunding round at the same time. The company reports that over 5,000 Freetrade users have participated in the round so far. The Freetrade round incorporates two separate offers of shares with no difference in the price and terms, according to the site. The £4.76 million is the largest securities offering on Crowdcube so far in 2020.

Freetrade continues to accept investors as it seeks to raise up to £7 million. According to the offering page, Freetrade is raising equity capital at a pre-money valuation of £140 million. The share price has been set at £2.51/share.

In 2019, Freetrade launched a securities offering to robust demand. Investor interest was sufficiently strong to take the Crowdcube platform down. This is the 6th crowdfunding offering on Crowdcube with  Freetrade currently reporting 10,000+ shareholders. Its first offering took place in 2016.

Freetrade is an FCA regulated, commission-free trading app that has experienced solid growth in the past 12 months. According to the company, Freetrade has grown by 500% in the last year with over 150,000 users – with 70,000 of these users coming since January 1st. The app allows people to buy stocks or use an ISA to invest up to £20,000/year in a tax-advantaged account. In 2019 Freetrade raised $15 million, including a Series A led by VC Draper Esprit.

Freetrade states that additional capital will be utilized to accelerate growth as trading volume has doubled through February and March.

In a release, Freetrade CEO and founder Adam Dodds said that crowdfunding has played an integral part of their growth since day one:

“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 that Freetrade continues to impress investors:

“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.”

Fintech has remained a popular category for private markets as well as online capital formation platforms. Yesterday, Crowdcube revealed that April had been a solid month of growth rising 28% year over year.  It appears that May will be a good month too.

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