Investa is raising funds via Crowdcube. The firm explains that it has built the UK’s first zero-commission listed options trading app for on-the-go traders.
Established by ex-Citi options brokers, and reportedly built by the co-founder of Freetrade, Investa intends to level the playing field by offering a “more accessible means of trading stocks and options.”
Investa is currently carrying out its fundraising efforts via Crowdcube with 6 days remaining in the sale. The firm offers Equity / EIS. Based in the United Kingdom, the firm reports a total £617,044 raised at the time of writing from 433 investors. The funds raised thus far represent 205% of the initial target of £300,000.
The firm offers Equity – 9.33%; reports a Pre-money valuation of £6,000,000; a Share price of
£3.5044662; Tax relief; EIS; Tax reduction – 30%.
The Crowdcube Raise now reportedly forms part of a “wider” round, in which the company had secured a total of £230,000 “off-platform investment” prior to the Crowdcube round.
This investment is on the “same terms” and has been “reflected onto the progress bar.”
The firm is said to be FCA regulated with mobile app in final testing phase. The business has been founded by Citi options brokers and built by Freetrade’s co-founder.
Some other highlights:
- Global options trading volume hit a record 108.2 bn in 2023, up 98% YoY
- £1mn+ in funding raised to date from industry leaders & traders
The team behind Investa estimate that under 2% of UK retail investors have traded an option.
The Investa team also shared that almost 20% of their US counterparts have! Let’s level the playing field for UK traders by “taking away the commission and improving accessibility.”
The Investa team explains that they want to tackle the problem with the UK’s first zero-commission listed options platform, tools built “for retail investors, educational guides and an experience for the on the go trader.”
Market & Growth
Listed options trading has grown at “a CAGR of 42% a year since 2018, with 5 straight years of record breaking volumes and a SAM for Investa of £600m.”
Business model
Their primary revenue drivers will be FX conversion fees “from stock & options trades along with a tiered freemium to premium membership model.”
Competition
Other apps cannot offer options and they feel they have complex interfaces.
They claim that their edge will be an intuitive user experience with “a zero-commission offering, built for retail,”
Use of funds
Scale their marketing operations, while also growing Investa’s core team and and finalize the launch of the app.
Investors & funding
More than £1 million raised to date from a group of “serial entrepreneurs, traders, financial markets leaders and hedge fund CEOs.”
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