The day after news broke about the collapse of a funding round for Freetrade earlier this year, the UK stock trading app launched a new crowdfunding campaign aimed at the public.
Several months prior, Freetrade had signed term sheets with new investors to secure funding at a £700 million valuation, as reported by the Financial Times. However, the deal fell through in January amid a broader downturn in the tech sector.
In May, the company managed to raise £30 million from existing backers via a convertible loan note, but opted not to pursue a new valuation, according to the FT. Despite this funding, Freetrade also took measures in June to reduce expenses and extend its cash runway by laying off around 15% of its workforce, which numbers 300.
Today, Freetrade has initiated pre-registration for its eighth crowdfunding round, offering its 17,000+ existing investors the chance to participate in the convertible loan note.
CEO Adam Dodds commented, “Despite significant headwinds in global stock markets, we’ve seen existing and new customers continue to grow throughout 2022. Investors are seizing the opportunities presented by market volatility, and Freetrade, as a business, is doing the same.”