Investa, a UK-based company specializing in commission-free stock and options trading, has achieved a significant milestone by raising over £700,000 in its inaugural crowdfunding campaign, which was launched on September 25. This campaign, which exceeded its funding target in under two hours and was 200% over-funded in less than two weeks, was closed six days early due to overwhelming demand. More than 500 investors participated in this successful round.
The funds raised will be utilized to accelerate the development and marketing of Investa’s trading app, which is designed to make options trading more accessible to UK investors. Currently, only about 2% of UK investors have traded options, a stark contrast to the 20% in the US, presenting a substantial opportunity for growth in this market.
Alec Beasley, co-founder and CEO of Investa, highlighted this disparity:
We estimate that only 2% of UK investors have traded an option, compared to 20% in the US. With Investa, we aim to bridge this gap and make the options market more accessible. The incredible interest in our first crowdfunding campaign demonstrates that there is a strong demand for what we are offering.
Beasley, who co-founded Investa last year, brings extensive experience from his time at Citi, where he spent over three and a half years on the Equity Derivatives Sales desk, primarily facilitating options trading for institutional investors.
Ian Fuller, the other co-founder and Chief Technology Officer of Investa, has a robust background as the former CTO and co-founder of Freetrade, a highly successful UK trading platform. At Freetrade, Fuller scaled the app to over 800,000 users with a high monthly active user base and expanded the engineering team from two to multiple cross-functional teams with fifty engineers. He also developed an in-house, event-sourced books and records platform with fewer than 20 engineers. Under his leadership, Freetrade became the second-largest retail broker on the London Stock Exchange in terms of volume, managing hundreds of millions of assets.
Prior to the crowdfunding campaign, Investa had already raised over £1 million from a group of serial entrepreneurs, traders, financial market leaders, and hedge fund CEOs. This brings the total amount raised to £1.8 million.
Investa’s mission is not only to provide a zero-commission trading platform but also to offer powerful data, tools, and insights to its users. The company plans to leverage its funding to enhance its product and community, including educational content and a growing community of like-minded investors.
As Investa prepares for its launch, it is clear that the company is poised to make a significant impact in the UK’s options trading landscape, driven by its innovative approach and strong financial backing.
However, it is crucial to note that options trading is considered a high-risk investment due to its complex nature. Investors should be aware of the potential benefits and risks involved and ensure they have a thorough understanding before engaging in such activities.
