London-based start-up Freetrade has raised $15m in a Series A 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 latest investment follows a record-breaking crowdfund in which it secured £1m in 77 seconds on Crowdcube.
The firm reports an 8 per cent week on week customer growth and has said it will put the cash toward a world-class team of engineers.
Founder and CEO Adam Dodds said: “This marks a pivotal moment for us as we continue to build a smooth and cost-effective investing app in the UK and Europe.
“We’re thrilled to have Draper Esprit, a VC firm with similar values and who’s committed to enabling everyone to get a slice of the companies of tomorrow, join us on this journey.
“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, also commented: “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.”