eToro’s Secondary Market Valuation Triples to $2.5 Billion

eToro’s value surged from $800 million to over $2.5 billion on the secondary market in its last round of funding closed in 2018. eToro is an Israel-based brokerage firm.

Calcalist publication confirmed the valuation as the US-based institutional investors purchased at least $50 million of eToro shares from current investors and employees at a valuation of more than $2.5 billion.

However, the brokerage declined to confirm its secondary market valuation.

eToro has grown significantly over the past year and garnered tremendous interest from global investors. According to eToro, the company doesn’t actively participate in secondary deals its shareholders conduct from time to time. The company also added that they weren’t raising money at this time.

According to Crunchbase, eToro started with $1.7 million as seed money and closed five funding rounds – raising almost $223 million.

A Multi-Asset Broker

Founded in 2007, the brokerage form gained popularity as a social trading platform. eToro offered new traders to copy the trading strategies of other experienced traders.

Over the years, eToro has expanded its offerings into popular asset classes, including cryptocurrencies.

Like other brokerage forms, eToro benefited from March’s market volatility- which the COVID-19 impact triggered.

The broker also confirmed that it witnessed an influx of retail traders in 2020. According to the last figure, the firm has over 15 million traders ob-board.

Meanwhile, the firm is spending millions on its brand promotion, especially with sports sponsorships in the current European football season. The broker has signed sponsorship deals with 12 football clubs in the UK and Germany.

Reportedly, the brokerage firm is planning for another round of funding with a higher valuation.