The value of the Israel-based fintech company eToro soared in the secondary markets after a 50-million-dollar acquisition by an American institutional body, Calcalist has reported Tuesday.
The value of the eToro jumped from 2018, the company’s last round of $100 million at a value of $800 million. To date, eToro has raised $162 million in five rounds of funding.
According to Calcalist, this is a secondary deal, in which the American institutional entity acquires holdings from investors and former employees for $50 million – an amount that may even increase.
The secondary deal in eToro is one of a series of such deals in recent years, especially in the last year, which stands at possibly more than a billion dollars.
In recent weeks, the virtual conference company Bizzabo announced the raising of $138 million, 60% of which was intended for the purchase of holdings of existing shareholders in the company.
Other companies that have made a secondary deal are SimilarWeb, Monday, Guano, and Moon Active. eToro said: “eToro does not take an active part in secondary transactions carried out from time to time by the company’s shareholders.”
eToro was founded in 2007 by brothers CEO Yoni and Ronen Assia who operate a network that allows its users to track investors and adapt their investment strategies in the capital market.
The significant jump in the value of the company has several reasons. The global eToro community adds 4 million new users to over 16 million users, during the Coronavirus period alone, due to increasing demand for online investments. The company also reported a sharp increase in the volume of stock trading on the platform compared to 2019.
In return for trading fees, eToro allows people to invest in a variety of assets in markets – stocks, commodities, currencies, ETFs, Indices, and Cryptocurrencies.
The prosperity of Bitcoin has made the company a leader in the field. Last year eToro acquired Firmo from Denmark, which has developed a secure platform for creating financial contracts, which can operate on blockchain infrastructure. This acquisition greatly aided its crypto activity.
eToro is promoting its brand with sports sponsorships. This time in the European football season. The sponsorship deals with 12 clubs in the United Kingdom and Germany.
The company currently employs over 1,000 people in 10 offices worldwide. Since the beginning of the year, eToro has recruited about 300 workers, half of them in Israel.