FreeAgent becomes first Seedr’s-backed company to IPO

Edinburgh-based accounting software provider FreeAgent has raised £10.7m in its listing on the London Alternative Investment Market (AIM).

Among the $5.71m the company raised in outside funding £1m came in the form of equity crowdfunding raised through Seedrs.

The IPO makes it the first equity crowdfunded startup to list.

The float will offer liquidity to early investors including Seedrs users and gives FreeAgent a market cap of £34.1m.

FreeAgent’s accounting software is targeted at small businesses and freelancers and counts more than 50,000 business users.

Seedrs CEO and co-founder Jeff Lynn congratulated FreeAgent on the IPO and said, “as the early stage investment space matures in the coming years, we look forward to seeing many more Seedrs companies floating or exiting.

“We strongly believe that this asset class will be very fruitful for investors with diverse investment portfolios, and FreeAgent’s listing is an early example of that.”

FreeAgent says the listing will offer it more financing options to accelerate its progress as well as improve customer confidence due to the detailed scrutiny quoted companies undergo.

Its other backers include Lightbank, LocalGlobe and SaaS Capital.

Seedrs saw its most active month to date in October with almost £20m invested in companies on the platform.

It brings the total raised by companies on the platform to more than £160m since its launch in July 2012.

Lynn is bullish on the platforms future growth despite reports of a cooling interest in the crowdfunding sector.

He said, “despite Brexit, the UK is still attractive and safe for inward investment and will continue to be one of the number one destinations for entrepreneurs to set up a business with its favourable tax reliefs, streamlined business incorporation and simple transport abroad.”

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