/retail banking

News and resources on retail banking, consumer finance and reinventing customer experience in finance.
Freetrade launches crowdfunding campaign

Freetrade launches crowdfunding campaign

The day after it emerged that a funding round for Freetrade fell apart earlier this year, the UK stock trading app has gone back to the public with another crowdfunding campaign.

Several months ago, Freetrade signed term sheets with new investors to raise money at a £700 million valuation, according to a letter obtained by the Financial Times.

However, in January the deal was killed off amidst a wider dive for the tech sector.

The firm eventually raised £30 million from existing backers through a convertible loan note in May but chose not to seek a new valuation, says the FT.

Despite that raise, Freetrade still moved in June to cut costs and extend its cash runway by laying off about 15% of its 300-strong staff.

Today, Freetrade opened pre-registration for its eighth crowdfunding round, inviting its 17000+ existing investors the option to invest in the convertible loan note.

Adam Dodds, CEO, Freetrade, says: "Despite significant headwinds in global stock markets, we’ve seen existing and new customers continue to grow throughout 2022.

"Investors are not wasting the opportunity presented by market volatility and Freetrade, as a business, is doing the same."

Comments: (0)