Freetrade Returns to Crowdfunding as It Targets £650 Million Valuation

Freetrade, the UK commission-free stock trading platform, has raised £8.5 million so far on the first day of its seventh public crowdfunding round on Crowdcube, clearly eclipsing its target of £1 million.

London-based start-up said the new investment follows a record-breaking crowdfund in which it secured £1 million in just 77 seconds, also on Crowdcube. This then got a significant top up after Freetrade raised a total of £5 million across two further crowdfunding rounds which were notably in the firm’s very first crowdfunding attempt back in 2016.

“Today we set a new record as the first company on Crowdcube to raise £6m, £7m or £8m in less than 24 hrs (working on £9m right now). We’ve been overwhelmed by the demand for investment into Freetrade once again,” said Freetrade CEO Adam Dodds.

Freetrade’s latest fundraising round values the group at £650 million and marks the first time that the broker has opened its crowdfunding to European residents.

Freetrade in a hiring spree

Freetrade has gone into a hiring spree since it closed on a £50 million funding round back in March. Most recently, the firm appointed Revolut’s former finance executive Paul Brooking as Chief Financial Officer (CFO) as it continues its investment in new executive talent.

Brooking spent the bulk of his career at the UK leading broker IG Group where he held a variety of analogues roles including the Group Financial Controller, Head of Finance and Head of Corporate Finance.

The firm, which claims one million customers and £1 billion in assets under administration, has used the Crowdcube platform many times to open its equity up to retail investors and raise fresh capital.

In 2019, they raised $15 million, including a Series A led by venture capital firm, Draper Esprit.

Rather than partnering with an established broker, Freetrade holds a ‘full scope firm’ license from the FCA.

Freetrade, which calls itself a challenger stockbroker, has rebuilt its platform infrastructure for investing to allow traders to place their instant orders without having to pay a commission fee. Before that, clients were allowed to invest in stocks and ETFs, but only if they accept to execute their trades at the end of business day, otherwise the broker charges £1 per trade.

Freetrade’s app offers commission-free stock investment and is targeted mainly at millennials. The company has recently accelerated both new investments and product range, including the introduction of fractional shares.