Total amount raised
$692.7 Million
Latest funding date
7/1/2023
Location
eToro has successfully navigated 18 funding rounds, attracting investments from notable backers such as SoftBank and Velvet Sea Ventures. The platform offers a diverse range of investment options, including stocks, cryptocurrencies, and ETFs, all within a user-friendly app.
Keep reading to explore the intricacies of eToro's fundraising journey and the investors backing this innovative platform.
What Is eToro?
eToro, founded in 2007, is a global financial services company headquartered in Tel Aviv, Israel. The platform allows users to trade and invest in various financial instruments, including stocks, cryptocurrencies, and ETFs.
With a significant employee base of 1001-5000, eToro is known for its user-friendly interface and features like CopyTrader™, which enables users to replicate the trades of top investors. The company has a strong global presence and is regulated by multiple financial authorities.
How Much Funding Has eToro Raised?
- Round Name: Series E
- Amount Raised: USD 100,000,000
- Date: March 2018
- Lead Investors: China Minsheng Financial Holdings
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand business operations and invest in new technologies.
- Round Name: Series E
- Amount Raised: USD 50,000,000
- Date: April 2018
- Lead Investors: China Minsheng Financial Holdings
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product offerings and strengthen financial stability.
- Round Name: Secondary Market
- Amount Raised: USD 50,000,000
- Date: December 2020
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide liquidity to early employees and angel investors.
- Round Name: Debt Financing
- Amount Raised: USD 50,000,000
- Date: February 2021
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial stability.
- Round Name: Private Equity
- Date: March 2021
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand business operations.
- Round Name: Series Unknown
- Amount Raised: USD 250,000,000
- Date: March 2023
- Investor Count: 6
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To invest in new technologies and enter new markets.
- Round Name: Secondary Market
- Amount Raised: USD 120,000,000
- Date: July 2023
- Valuation at Round: Slightly lower than USD 3,500,000,000
- Motivation Behind the Round: To provide liquidity to early employees and angel investors.
- Round Name: Post-IPO Debt
- Amount Raised: USD 250,000,000
- Date: July 2025
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To strengthen financial stability and enhance product offerings.
Total Amount Raised: USD 870,000,000. Current Valuation: Slightly lower than USD 3,500,000,000.
Key Investors
- SoftBank
- Details: SoftBank is a global investment company known for its significant investments in technology and finance sectors. It has a strong presence in the venture capital world, often leading large funding rounds.
- Investment Focus Areas: Technology, finance, telecommunications.
- Notable Investments: Uber, WeWork, Alibaba.
- Velvet Sea Ventures
- Details: Velvet Sea Ventures is a venture capital firm that invests in early-stage and growth-stage companies. The firm focuses on innovative and disruptive businesses.
- Investment Focus Areas: Technology, media, early-stage companies.
- Notable Investments: Scopely, LiquidSky.
- SoftBank Vision Fund 2
- Details: Managed by SoftBank Group, this venture capital fund focuses on technology investments. It aims to support companies that are driving the next wave of innovation.
- Investment Focus Areas: Artificial intelligence, robotics, innovative technology sectors.
- Notable Investments: Uber, WeWork, ByteDance.
- ION Investment Group
- Details: ION Investment Group is a global financial technology company that provides software and services for trading, treasury, and risk management. It has a strong focus on the financial sector.
- Investment Focus Areas: Financial technology, trading, risk management.
- Notable Investments: Openlink, Fidessa.
What's Next for eToro?
eToro's future looks promising with its planned expansion of partnerships, particularly with Twitter (now known as X), to integrate stock and crypto trading directly into the social media platform. This move could significantly boost user engagement and trading volumes, presenting a substantial growth opportunity.
Given the company's ability to attract significant investments, as evidenced by the recent $250 million raised, future fundraising opportunities seem likely. These funds could be used to further develop innovative features like AI assistants and extended trading hours, ensuring eToro remains competitive in the evolving market.
However, eToro will need to navigate challenges such as market volatility and increased competition from platforms like Robinhood. Additionally, economic factors like the rising cost of living may impact consumer investment capacity, posing a potential hurdle to sustained growth.
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