Yoni Assia, co-founder and CEO, eToro Doron Letzter (eToro pic)
eToro, the Israeli firm that offers its clients a trading platform, is selling off $120 million worth of shares in the company to certain early investors in a secondary share sell. Unfortunately, the deal did not bring the company any new capital as it was a secondary sale and it also left eTorro with just a $2.5 billion valuation, way down from the one time optimistic expectation of a valuation of up to $10 billion from a planned IPO that never materialized. This is just another sign of the times as the world markets continue to suffer through a financial crisis.
And CNBC reported that early employees and angel investors in eToro were t given an opportunity to sell off some of their shares in the company as part of the deal.
Founded in 2007 by Yoni and Ronen Assia, and David Ring, eToro developed a platform where users can invest in a variety of equities, commodities, indices, and cryptocurrencies. eToro is a global community of more than 27 million registered users who share their investment strategies. The platform enables users to easily buy, hold and sell assets, monitor their portfolio in real time, and transact whenever they want.
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“As a business which continues to demonstrate sustainable, profitable growth we are considered an attractive investment opportunity by many investors,” Yoni Assia, eToro’s CEO and co-founder, said in a Monday memo to employees cited by CNBC.
“This secondary transaction will give existing shareholders in eToro and veteran employees who have vested options the opportunity to sell a proportion of their shares to these purchasers.”
In other eToro news, the Bank of Spain has approved the registration of eToro as a service provider of exchange of virtual currency for fiat currency and electronic wallet custody services. eToro (Europe) Digital Assets Ltd. has been registered in the Virtual Asset Service Provider Register maintained by the Bank of Spain under code number D848 as a service provider of exchange of virtual currency for fiat currency and electronic wallet custody services.
Tali Salomon, eToro’s Regional Manager for Iberia and LatAm, said, “This registration is a testament to our commitment to operating a growing business which prioritises consumer protection while also nurturing innovation and ensuring access for individual investors. As a multi-asset platform which has been a long standing supporter of crypto and blockchain technology, we are proud to have received this registration from the Bank of Spain.”
