FreeAgent to Crowdfund $1.6 Million Funding Round

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FreeAgent, a cloud accounting provider with a mission to democratize accounting for U.K.-based microbusinesses and freelancers, today announced its plan to crowdfund its next funding round. The company has listed its $1.6 million (£1 million) goal with crowdfunding platform, Seedrs, and is offering 3.21% equity in exchange.

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The news broke this morning in London, and 82 investors have already contributed 36% of FreeAgent’s goal amount (as of 7:19 p.m. GMT). The company has 60 days to raise the remaining funds.

If investors contribute the remaining 64% (approximately $1 million) within 60 days, FreeAgent will use the funds to accelerate product development and acquire more micro-business and freelance customers. The company raised $5 million in debt financing in April and is currently valued at $47 million (£30 million).

Opting out of a traditional venture capital round, the Edinburgh-based company crowdsourced the funding to enable its 40,000 customers to invest, and to potentially attract more small business owners and accountants. Investors can take a stake in FreeAgent from as little as $16 (£10) per share.

FreeAgent co-founder/CEO Ed Molyneux says “who [is] better to help us achieve our vision of ‘democratizing accounting’ than our customers? We chose crowdfunding because we want to make it straightforward for them—as well as other small business owners—to invest in FreeAgent.”

FreeAgent debuted its financial health insights at FinovateEurope 2013 in London.

Finovate Alumni News

On Finovate.com

  • FreeAgent to Crowdfund $1.6 Million Funding Round
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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

On Finovate.com

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FreeAgent Scores $5 Million Line of Credit

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U.K.-based online accounting system provider Free Agent has raised $5 million in new debt financing courtesy of SaaS Capital. The new funding will be used helping the company acquire new customers.

Todd Gardner, founder and managing director of SaaS Capital said, “Free Agent is exactly the type of company we were looking to assist when we announced our new fund last month … (They) simply needed more capital to seize the market opportunity in front of them.”

Free Agent CEO Ed Molyneux says SaaS Capital’s investment was a unique opportunity. “We have historically raised equity and also used some venture debt, but we found the SaaS Capital solution to be a great way to finance our growth compared to those other options.”

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FreeAgent CEO Ed Molyneux presented at FinovateEurope 2013 in London.

The financing from SaaS Capital comes in the form of a “revenue-based line of credit.” According to FreeAgent, this funding strategy will give the company the ability to deploy capital for longer periods than other lenders, as well as more flexibility when it comes to funding its own longer-term goals. Note that Finovate alum, Lighter Capital, specializes in this kind of financing.

FreeAgent’s cloud-based accounting system is geared toward freelance workers and what the company calls “micro-businesses” for whom other solutions are often too expensive and/or too complex. The company’s platform offers a wide variety of features to help manage business operations from tracking expenses to sending invoicing, to tax planning and filing.

FreeAgent was most recently in the headlines for its partnership with small-business booking-platform Appointedd announced in February, and last December, FreeAgent was selected to be a part of Lloyds Banking Groups new Business Toolbox.

Founded in April 2007 and headquartered in Edinburg, United Kingdom, FreeAgent made its Finovate debut at FinovateEurope 2013, where its online accounting system was demoed. The company has 50 employees and more than 27,000 paying customers. Ed Molyneux is CEO.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.