eToro, a popular online trading platform, has announced plans to sell shares to its employees and angel investors, according to a report by Reuters. The company’s CEO and co-founder, Yoni Assia, stated that the goal is not to raise more funds but to provide liquidity to long-term shareholders and employees.
eToro, along with its rival Robinhood and others, has gained significant popularity among retail investors, particularly among the younger generation. The pandemic has further boosted the popularity of these online trading platforms.
The sale of eToro shares values the company at $3.5 billion, as reported by CNBC. This valuation is lower than the $8.8 billion offered by a previous deal with FinTech Acquisition, which was later canceled. FinTech Acquisition is a special purpose acquisition company (SPAC) supported by investor Betsy Cohen.
In March, eToro raised $250 million from investors, including SoftBank Vision Fund 2 and Velvet Sea Ventures, which valued the company at $3.5 billion.
SPACs are companies listed on the stock exchange whose goal is to bring other companies to the market by merging with them. eToro’s decision to sell shares to its employees and angel investors aims to provide an opportunity for existing investors to sell their shares and for employees to cash out their holdings.
The growing popularity of eToro and similar platforms reflects the increasing interest in online trading and investing. As more individuals seek to participate in the financial markets, these platforms offer accessible and user-friendly options for trading and investing in various assets.
eToro’s move to facilitate the sale of shares to its stakeholders demonstrates the company’s commitment to providing liquidity and opportunities for its investors and employees.
How does eToro’s decision to offer shares to its employees and angel investors provide liquidity to long-term shareholders and employees?
EToro, a popular online trading platform, has announced plans to offer its shares to employees and angel investors. The goal behind this move is not to raise additional funds, but rather to provide liquidity to long-term shareholders and employees, according to CEO and co-founder Yoni Assia.
Alongside competitors like Robinhood, eToro has seen a surge in popularity among retail investors, especially younger generations. The COVID-19 pandemic has further accelerated the rise of online trading platforms.
Reports suggest that the sale of eToro shares values the company at $3.5 billion, a figure lower than the $8.8 billion previously offered in a deal with FinTech Acquisition, which was ultimately canceled. FinTech Acquisition, backed by investor Betsy Cohen, is a special purpose acquisition company (SPAC).
In March, eToro raised $250 million from investors such as SoftBank Vision Fund 2 and Velvet Sea Ventures, resulting in a valuation of $3.5 billion.
SPACs are listed companies that aim to bring other companies to the market through merging. eToro’s decision to offer shares to its employees and angel investors provides an opportunity for existing investors to sell their shares and allows employees to cash out their holdings.
The growing popularity of eToro and similar platforms is a reflection of the increasing interest in online trading and investing. As more people look to participate in financial markets, these platforms present accessible and user-friendly options for trading and investing in various assets.
eToro’s move to facilitate the sale of shares to stakeholders demonstrates its commitment to providing liquidity and opportunities for its investors and employees.
“eToro’s impressive $3.5 billion secondary offering, backed by its dedicated employees and angel investors, underscores the market’s trust and recognition of the platform’s potential. This funding will undoubtedly boost eToro’s expansion plans and solidify its position in the ever-evolving fintech landscape.”
“eToro’s successful $3.5 billion secondary offering, backed by employee and angel investors, is a testament to the company’s growth and market potential. A true demonstration of confidence from insiders and industry experts, this funding will undoubtedly propel eToro to even greater heights within the global investment landscape.”