The firm's second crowdfund in three months went without a hitch and saw huge demand from investors.
The round, initially targeting £1m overfunded by 400 per cent, with over 5000 investors. It is Freetrade’s second crowdfund this year following it reaching £1m of funding in its first 10 minutes of going live back in April. Freetrade eventually closed the round at £2m but only after ‘technical difficulties' with Crowdcube’s platform shuttered inflows owing to the high demand.
Freetrade says it will be using the funds from the new round, which was done at a higher valuation than in April of £43m, to grow its engineering team and accelerate its development of its investment platform, invest in customer growth and expand into European markets with Ireland as the first country and France, Germany and the Netherlands to follow.
Crowdfunding, in particular for fintech firms, is on a bit of a tear at present. Crowdcube saw revenues soar 39 per cent to £3.72m in the first half of 2019, compared to the same period in 2018, thanks to over £100m pledged to companies.