Crowdfund raises record £4.5m equity in four hours

A challenger stockbroker has raised the largest equity crowdfund in the UK so far this year, generating £4.5m in just four hours.

Over 5,000 people invested with Freetrade, an app-based stockbroker, when it launched its latest initiative in partnership with crowdfunding platform, Crowdfund, earlier this month. £1m was raised in four and a half minutes, with an additional £3m raised from existing shareholders.

The app, launched in 2018, allows people to buy stocks in global businesses such as Amazon, Greggs, Tesla, Fevertree and Apple, offering them the option to use an ISA to invest up to £20k per year in a tax-efficient account.

Freetrade has grown by 500 per cent in the last 12 months and says its customer numbers have grown exponentially since the start of the coronavirus pandemic. Trading volumes doubles in February and March while financial markets struggled, with over 70,000 new customers joining the service.

Freetrade now has over 10,000 shareholders following six crowdfunding campaigns with Crowdcube and has set a new target of raising £7m.

Adam Dodds, CEO and Founder of Freetrade, said: “Crowdfunding has played an integral part in our growth since day one; 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, said: “Freetrade continues to impress investors with its unique proposition and platform.

“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.”