Freetrade smashes crowdfunding target, raises over £5m on Crowdcube

The initial £1m target was reached in four minutes and thirty-three seconds.

Just over three weeks ago AltFi exclusively revealed that Freetrade was launching its sixth crowdfunding campaign in May and it was setting out to raise £1m.

The investment platform has now hit over £5m from more than 5000 investors and has now set its sights on a £7m crowdfunding target.

According to Freetrade, the £1m initial target was reached in just over four and a half minutes after having raised an additional £3m from existing shareholders.

Freetrade’s latest crowdfunding effort is the largest to have taken place in the UK in 2020 so far and is its sixth on crowdfunding platform Crowdcube.

With Freetrade, customers can buy stocks in the likes of Amazon, Greggs, Tesla, Fevertree and Apple and can use an ISA to invest up to £20,000 per year in a tax-efficient account.

Adam Dodds, Freetrade CEO and founder, said: “Crowdfunding has played an integral part in our growth since day one, 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,” he added.

Dodds spoke with AltFi yesterday on day one of our AltFi Digital Summit and spoke about upcoming products such as a pension fund—perhaps funded by the recent crowdfunding effort—and also teased a possible IPO in the not-too-distant future. 

The fintech says the funds will be used to accelerate growth and continue its expansion—Freetrade has added over 70,000 customers since the start of 2020 alone.