eToro Raises $250M at $3.5B valuation without SPAC
Social trading and investment platform eToro has announced that it has raised $250 million in a private funding round, valuing the company at $3.5 billion.
eToro, the Israeli social trading and multi-asset brokerage company, raises $250M in a private placement at a valuation of $3.5 billion
The latest funding comes after the company canceled its plans to go public via a special purpose acquisition company (SPAC), citing slower growth in its business.
The funding round was led by venture capital firm Sapphire Ventures, with participation from SoftBank Vision Fund 2, Fidelity Management & Research Company, and other investors. The company said it plans to use the funds to continue its global expansion and invest in product development.
Revolutionary Platform eToro
eToro is known for its platform that allows users to buy and sell a wide range of assets, including stocks, cryptocurrencies, commodities, and more, as well as for its social trading features that allow users to follow and copy the trades of other successful traders. The platform has attracted more than 20 million registered users in more than 100 countries since its launch in 2007.
Many viewed eToro’s decision to cancel its SPAC merger as a setback, as numerous fintech companies have gone public via SPACs in recent years. However, eToro said it decided to raise capital through a private funding round instead, as it believed it could achieve a higher valuation this way.
The company’s slower growth was also a factor in its decision to cancel the SPAC merger, as it had forecasted stronger revenue growth for 2022 than it had actually achieved. However, eToro’s CEO Yoni Assia said the company is confident in its long-term growth prospects and is excited to use the new funding to expand its offerings and reach more users around the world.
