Connect with us

Hi, what are you looking for?

Jewish Business News

Business

eToro Cancels IPO Plans – Drops Valuation Expectations by Half

Yoni Assia, co-founder and CEO, eToro Doron Letzter eToro

eToro, the Israeli startup that offers its clients a trading platform, has finally scrapped its planned IPO and will instead try to raise another $1 billion. The decision to do so came after the deadline initial public offering eToro’s SPAC merger with the Betsy Cohen-backed blank-check company FinTech Acquisition Corp V passed. And it also follows an almost yearlong drama in which the company was forced to lower expectations for the now failed initial public offering a number of times.

In more bad news for eToro, word is that the new fundraise will only leave the company with a $5 billion valuation, $6 billion if it is lucky. The company originally expected a valuation of well over $10 billion from the IPO. The company first delayed IPO plans back in September 2021. Then in January eToro was forced to lower its initial public offering expectation by 15%, from a previously expected valuation of as much as $10.4 billion down to just $8.8 billion. This was because the company had failed to meet the original deadline by the end of 2021.

The main reason for eToro’s failure and drop in value is probably the crash of the cryptocurrency market. Cryptos are a large part of the company’s business and revenue streams. Now, for obvious reasons, it has lost all of that. Even should Cryptos make a miraculous comeback someday, that would clearly be far off into the future.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

Founded in 2007 by CEO Yoni Assia and his brother Ronen Assia, eToro calls itself the world’s leading social trading network, with millions of registered users and an array of innovative trading and investment tools. The company declares its main goal is to remove barriers and make online trading and investing more accessible to the everyday user.

The eToro platform and app offer a variety of financial assets in which to trade and invest and is used by people in 140 countries.

In 2020 alone eToro doubled its revenue to 450 million, becoming profitable. It also added 5 million new users last year and just celebrated reaching the milestone number of 20 million users. The increase in revenue for its investments platform is credited by analysts to the Coronavirus crisis. This may be why it has doubled in expected value in the last three months.

FacebookTwitterEmailRedditLinkedInTumblrWhatsAppSkypePocketPinterestShare

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Copyright © 2021 Jewish Business News