Stock investment app Freetrade has raised $15 million in a Series A round. It was led by tech venture capital investor Draper Esprit and follows the previous record-breaking $7.5 million crowdfunding campaigns earlier this year.
The app offers commission-free stock investment and is targeted at millennials. Traditional methods of stock trading can cost up to £12 per trade, while on the firm’s app basic orders are free, or £1 for an instant order.
The London-based startup said the funds will allow it to accelerate its “already rapid” growth, hire a world-class team, double down on engineering hires and market expansion.
“This marks a pivotal moment for us as we continue to build a smooth and cost-effective investing app in the UK and Europe,” said founder and CEO Adam Dodds.
“From the beginning, we’ve been focused on making Freetrade the home screen app for investing. With this investment, we’ll be able to level up our team and further develop our proprietary technology that will enable us to launch our new investment platform, providing users with the option to purchase not only US but UK and European fractional shares — a world first!”
Simon Cook, CEO of Draper Esprit, added:
“Freetrade are on a mission to open up investment opportunities for everyone, as are we. In this sense, their mission is totally aligned with our own, as a rare tech-focused VC listed on the stock exchange.
“The company have shown exceptional growth in the short time since they first launched the platform last year. We could not be more delighted to support with Adam, Viktor, Ian and their wider team as they enable Europe’s 100 million millennials to benefit from the world’s economic growth.”
The latest investment follows a record-breaking crowdfund in which it secured £1 million in 77 seconds on Crowdcube.