Investing app Freetrade has raised £4.5 million from more than 5,000 people in just four hours.

Working with Crowdcube, the FinTech startup exceeded £1 million in less than five minutes and raised £3 million from existing shareholders before opening the campaign to customers.

Freetrade’s fundraise is the largest equity crowdfunding campaign to be completed in the UK this year and it remains open, with sights set on a £7 million funding goal.

The funds will be used to accelerate growth, which has already seen new customer numbers jump to 150,000 since the pandemic hit, while trading volumes doubled through February and March when the financial markets were in turmoil.

With over 70,000 new customers since the start of the year, Freetrade now has over 10,000 shareholders following six crowdfunding campaigns with Crowdcube.

“Crowdfunding has played an integral part in our growth since day one,” said founder and chief executive Adam Dodds. “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.”

Freetrade calls itself a challenger stockbroker, aiming to bring mobile-first, commission-free investing to the UK and Europe. With 60 employees, the UK-based firm is already Financial Conduct Authority-regulated, FSCS-secured and one of the newest members of the London Stock Exchange.

In 2019, the company raised $15 million, including a Series A funding round led by venture capital firm Draper Esprit.

Share Story: