Multi-asset investment platform eToro Group Ltd popularly known as eToro has raised $250 million in funding rounds since 2018. The investment firm was valued at $3.5 billion after the fundraise.
In July 2022, eToro declined to go public through a special purpose acquisition company (SPAC) at a market valuation of $10 billion. Later, on Tuesday, March 21, the Israel-based trading and investment firm revealed about fundraising, which happened for the first time since 2018.
According to the press release on Tuesday, the funding round saw participation from large investors such as ION Group, SoftBank Vision Fund 2, Velvet Sea Venture, Social Leverage, Spark Capital, and a few others.
Thanks to the Advance Investment Agreement (AIA) that eToro signed in early 2021, it successfully raised funds in line with its anticipated SPAC deal.
The AIA is initiated between investors and a company, where investors provide funding without taking equity simultaneously under certain conditions. In this case, eToro signed the deal in 2021 with Fintech V at a $10 billion valuation and agreed to two key conditions: the company must be prohibited from pursuing SPAC transactions and not raise another fund for the next two years after signing.
eToro underperformed due to several crypto marketplace crashes and poor crypto market sentiment, which resulted in the Fintech V and eToro ending the SPAC deal.
Meron Shani, the Chief Financial Manager of eToro, stated, “Total commissions for 2022 were $631 million, down versus our stellar performance in 2021, yet up 5% versus 2020.”
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