UK FinTech FreeTrade seeks £ 650m in a new round of crowdfunding. This is twice the value the company posted earlier this year as the trading app plans to push to cryptocurrencies.
The group began raising funds on Wednesday for the seventh time since its establishment in 2016. London-based start-ups also raised money from traditional venture capital investors in March.
The sharp rise in free trade valuations was due to a surge in retail equity trading during the Covid-19 pandemic. Flood of young customers and new cash From Robin Hood in the US to established players such as The Hague Slan’s Down in the UK.
In the UK, clients opened 7.1 million investment accounts during the first 12 months of the pandemic, according to the latest statistics from the Financial Conduct Authority.
Free trades with assets of over £ 1bn recently take advantage of this momentum Expanded throughout EuropeConfrontation with continental rivals such as Trade Republic..
Adam Dodds, CEO of Freetrade, told the Financial Times in September that “Battlefield Europe” will appear in investment apps next year.
“What we’ve seen over the last two years is that the theory that Europeans don’t invest and aren’t interested in the stock market isn’t true,” he said.
Freetrade — which has 150,000 to 600,000 funded accounts earlier this year — is expected to generate £ 15m this year from £ 3m last year. However, continued investment in technology and marketing was expected to result in a loss of £ 26 million in interest, taxes, depreciation and pre-amortization.
The company, which charges investors foreign exchange fees for their transactions and offers monthly premium subscriptions, has a new valuation target of 13 of 2022 forecasted earnings, except for new business lines such as cryptocurrency trading. He said it represents a multiple of multiples. It plans to start this in the new year, Revolut, With the scalable capital of Germany Robin Hood of America..
Lydia, a French payments mobile app, announced this week that 5 million users will be able to trade cryptocurrencies along with stocks, ETFs and precious metals. “With a pandemic boost, trading has seen unprecedented desires from individual investors,” the company said.
Freetrade’s push to cryptocurrencies goes against a campaign by UK regulators Discourage high-risk investments Among retail panthers. The FCA has stated that it wants to reduce the number of investors jumping into digital tokens for the first time and has expressed concern about clever trading apps.[make] It’s easy for consumers to make bad decisions. ”— Shows a surge in sign-ups during the January frenzy of US“ memestocks ”.
Freetrade counts 13,000 individual shareholders as the largest owner block, alongside venture capitalists such as Left Lane Capital and Molten Ventures, formerly known as Draper Esprit.
It is the first time to open crowdfunding to European investors and is expected to raise up to £ 13m. The company hopes to roll out its service throughout Europe next year, awaiting regulatory approval from the Swedish authorities.
UK fintech Freetrade seeks to double valuation in fundraising Source link UK fintech Freetrade seeks to double valuation in fundraising
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