Trading Platform Freetrade Raises over £1M, Starts New Crowdfunding

[forex4you]

Trading Platform Freetrade Raises over £1M, Starts New Crowdfunding

<p>Freetrade, a UK-based stock trading platform, has raised over £1m from "previous investors and early access signups"</p><p>The company in an updated on Twitter said it raised £1,314,400 from 1,976 investors.</p><p>This is even as the commission-free trading platform kicked-off its latest crowdfunding campaign on Thursday.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Over £1m raised from previous investors and early access signups.Going live at 12 PM to everyone else, stay tuned.Capital at risk <a href="https://t.co/uiRSDh1VoI">pic.twitter.com/uiRSDh1VoI</a></p>-- Freetrade (@freetrade) <a href="https://twitter.com/freetrade/status/1570365993163304963?ref_src=twsrc%5Etfw">September 15, 2022</a></blockquote><p>Finance Magnates reports that the startup earlier in the year <a href="https://www.financemagnates.com/forex/brokers/freetrade-failed-to-secure-higher-valuation-as-investors-back-out/">failed to  gain </a>the high valuation it hoped for after prospective investors backed out. </p><p>Freetrade had projected to hit a valuation of £700 million from a funding round to be supported by new backers, but the deal fell apart.</p><p>At the end of November last year, the trading platform had set its target at <a href="https://www.financemagnates.com/forex/brokers/freetrade-looks-forward-to-double-its-valuation-with-a-new-fundraising/" target="_blank">a pre-money valuation of 650 million</a>.</p><p>Adam Dodds, the company's Chief Executive Officer, ascribed the development to unfavourable macro-economic environment during the advanced stage of the deal. Dodds noted that the venture capital market shrank during the period.</p><p>However, later in May, Freetrade secured £30 million in the form of convertible loan from its existing investors.</p><p>Revenue Boost</p><p>During its 2021 fiscal year which ended on September 30, Freetrade recorded <a href="https://www.financemagnates.com/forex/brokers/freetrade-ends-fy21-with-a-647-revenue-jump-clients-crossed-1-million/">a 647% boost</a> in its yearly revenue. The startup was able  to generate £12.7 million during the period.</p><p>The boost in revenue also correspond with the huge trading volume growth Freetrade recorded during the period. The company's trading volume reached £3.3 billion at September ending, a 313% surge from the fiscal year of 2020.</p><p>However, while Freetrade recorded a total client base of 886,743 during the 2021 fiscal year ended September, it crossed the 1 million mark at the end of December.</p><p>On the contrary, the commission-free brokerage platform suffered a pre-tax loss of  £18.2 million during the fiscal year.</p><p>Meanwhile, in January, Freetrade <a href="https://www.financemagnates.com/forex/brokers/freetrade-provides-direct-access-to-german-stock-market/">introduced German-listed stocks</a> to its users by providing direct access to the German stock market.</p><p>Dodds described the move as "a key step" for the company to launch its expansion into Europe and beyond.</p><p>"Our mission is to get everyone investing while keeping prices low. Freetrade's unique direct to market access and proprietary brokerage platform helps to unlock cost-savings that we can pass onto our customers through a simple and low-cost investment experience," Dodds explained.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.

Source: Trading Platform Freetrade Raises over £1M, Starts New Crowdfunding