eToro Abandons SPAC Public Launch to Secure $250M in an Unorthodox Funding Deal

Just last year, digital trading platform eToro was riding high off a $10.4 billion valuation. The next big step for the company was a public offering, which was set to proceed through a special-purpose acquisition company (SPAC). By late July 2022, that deal was trashed, and eToro’s valuation plummeted in the wake of widespread market upheaval.
But clearly, it’s too early to count eToro out. According to an announcement by the company, a $250 million fundraising round has been completed to help push eToro into the future. With top investors including ION Group, SoftBank, and Social Leverage, the fundraise was conducted not through traditional means but through an advanced investment agreement (AIA) the company assembled in 2021 in case the SPAC fell through. eToro’s valuation has already seen results from this new funding, enjoying a rise in valuation to $3.5 billion—a far cry from the $1.2 billion crater the company fell into last summer.

Harkening back to last year’s crypto downturn, eToro’s Chief Financial Officer, Meron Shani, wrote that this shift in the company’s strategy is part of its unique agility in the market: “The diversified nature of our multi-asset product offering ensured that commissions from equities and commodities partially offset the decrease in commissions from cryptoassets in 2022. It’s also worth noting that we were not impacted by the liquidity concerns which plagued many in the crypto industry.”

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