eToro valued at $2.5 billion in massive $120 million secondary deal | CTech
Summary
Current and former employees, as well as early investors in Israeli company eToro, are set to complete a large secondary deal in which they will sell $120 million worth of shares. eToro is not a party in the transaction and will not receive any of the money.eToro, which has developed a social investment platform, completed its last funding round in March, raising $250 million at a $3.5 billion valuation. The founding round was led by ION Group and Softbanks Vision Fund 2, and included participation by Velvet Sea Ventures, and a number of other existing investors.With the Wall Street IPO market still experiencing a slowdown, private secondary deals have become a highly sought-after commodity. The decrease is due to a sharp slowdown in activity in the crypto market, so that the share of crypto trading, which was one of the strongest engines of growth for eToro in recent years, amounted to 19% compared to 48% of the revenues that came from trading stocks and indices. Against this background and with the announcement of the cancellation of the IPO, eToro laid off 100 employees, approximately 6% of its workforce.