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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.