News: Israel’s eToro to go public through $10.4 billion SPAC deal backed by SoftBank, others.
(Reuters) – Online stockbroker eToro has agreed to go public through a merger with a blank check firm backed by banking entrepreneur Betsy Cohen.
EToro competes with Robinhood, which is very popular with young investors for its user-friendly interface. Robinhood has emerged as a gateway for amateur traders questioning Wall Street’s security.
The deal with FinTech Acquisition Corp V, a special-purpose acquisition company, includes a $ 650 investment from leading investors including Vision Fund 2, Fidelity Management & Research Co. LLC, and Wellington Management.
Founded in 2007, EToro has 20 million registered users who can manually invest in cryptocurrencies, stocks, commodities, exchange-traded funds, and more, while those lacking the time or experience can automatically copy others’ trades on the platform.
Special Purpose Acquisition Companies (SPACs) are shell companies that use the proceeds of an IPO to bring private companies public.
Cohen, who founded Jefferson Bank and Bancorp Inc, is one of the prominent business women who joined the SPAC frenzy.
EToro joins a wave of Israeli tech companies and startups, including mobile gaming company Playtika Holding Corp, which are going public in the US to capitalize on the capital market boom.
In 2020, eToro added over 5 million new registered users and had gross sales of $ 605 million, a 147% increase over the previous year.
Bitcoin makes up one of 25 positions opened on eToro, while the most popular stocks are Tesla Inc, Microsoft Corp and Apple Inc, according to the company’s website.
Reporting by Noor Zainab Hussain in Bengaluru; Adaptation by Anil D’Silva and Shounak Dasgupta
Original Source © Reuters