Investment start-up Freetrade has raised £50 million in a Series B round.
The firm’s app offers commission-free stock investment and is targeted at millennials in an effort to solve what it sees as generational inequality.
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 firm now has more than 600,000 customers in the UK, while quarterly trade volumes are exceeding £1 billion. It has opened offices in Sweden and Australia.
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Left Lane Capital, a growth equity firm focused on consumer internet and technology businesses, led the round. The Growth Fund of L Catterton, the largest global consumer-focused private equity firm, and LSE-listed VC, Draper Esprit, also participated.
These funds join Freetrade’s existing shareholder register, which includes over 13,000 individual investors following a record-breaking crowdfunding campaign in which it secured £1m in 77 seconds. The firm also raised $15m from investors in late 2019.
The funds will accelerate Freetrade’s growth in international markets and allow the team to scale its product.
“This is a transformational investment that will supercharge our mission to get everyone investing,” said CEO and founder Adam Dodds.
“It’s painful to see millions of investors across Europe stuck paying high fees and bogged down by complex terms and conditions. The costs of offering essential services like share dealing are simply not justifiable and erode valuable returns.
“Everyone already invests their time and their money on a daily basis, but there is so much more that millions can be doing to get the most out of their money.
“We are committed to helping everyone to achieve better financial outcomes.”
Freetrade says its goal is to help its customers achieve better financial outcomes through low costs and a strong emphasis on educating new and experienced investors about the benefits of developing long-term investing habits.
Harley Miller, Managing Partner of Left Lane Capital, said: “We are honoured to partner with Freetrade as they embark on this next chapter of growth, and continue to make investing more accessible for everyone in the UK and Europe.
“Left Lane has a strong philosophical alignment with management on doing right by the customer, something that is rare in the FinTech ecosystem.
“This sentiment is further corroborated by the robust and loyal community that Freetrade has cultivated over the years, which we found to be fundamentally unique – a true by–product of instilling trust and integrity in their platform.”