Stockbroking app raises £7m in crowdfunding to accelerate growth
A stockbroking app has announced that it has reached its £7m crowdfunding target to accelerate its growth plans.
Freetrade, based in London, raised the amount by crowdfunding from more than 8,000 people.
Working with Crowdcube, the company exceeded its £1m target in 4:33 minutes from existing shareholders, before going on to raise £7m in five days.
Within the first four hours, the company had raised the largest equity crowdfunding amount in the UK this year.
The funds will be used to accelerate Freetrade’s growth, which has increased 500 per cent in the past year to 150,000 customers.
The app allows people to buy stocks in companies such as Amazon, Greggs, Tesla, Fevertree, and Apple.
Freetrade’s fundraise is the largest equity crowdfunding campaign to be completed in the UK this year.
Freetrade founder and CEO Adam Dodds commented: “We’d always planned on crowdfunding in 2020 and the meteoric growth we’ve seen this year made us think that was still the right thing to do.
“Still, it’s been incredible to see so many people invest in Freetrade despite the precarious situation the world is in.
“I think that says a lot about the belief people have in us to provide the best, most affordable and accessible investment service on the market.”
Luke Lang, co-founder of Crowdcube, added: “Freetrade has proven the power of their community to fuel its growth once again.
“To defy the COVID-19 lockdown and raise £7m from 8,559 people is astonishing and a testament to their vision, team and product.
“Their record-breaking raise, at a time of deep uncertainty, will undoubtedly provide inspiration to fellow entrepreneurs during these challenging times.”
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