Sources: eToro is in the advanced stages of raising $800M to $1B at a $5B to $6B valuation, while its SPAC deadline has been extended to June 30, 2022
Context & Ripple Effects
When eToro announced its SPAC merger at a $10.4B valuation in March 2021, it was riding the peak of blank-check dealmaking. Fourteen months later, sources say the company is instead raising $800M to $1B privately at $5B to $6B — roughly half the SPAC price — while the merger deadline has been pushed to June 30, 2022.
The dual track matters because the private raise and the extension are two ways of asking the same question: whether public-market buyers will pay anything close to what the SPAC sponsor agreed to. The related coverage shows where this path led — eToro and its SPAC partner ultimately let the deadline pass without closing, and the company later secured only $250M at a $3.5B valuation under an agreement signed back in 2021.
First-order effects
- Private investors in the new round would be buying in at roughly half the $10.4B valuation the SPAC sponsor committed to, repricing the company against current market conditions rather than 2021 terms.
- Extending the deadline to June 30, 2022 buys eToro and the SPAC company about five more weeks to close or renegotiate, while the parallel raise keeps a fallback funding route open.
Second-order effects
- If the SPAC lapses, eToro's negotiating leverage shifts to private backers — the eventual outcome was a much smaller $250M raise at $3.5B, confirming the down-round trajectory the new pricing already implies.
- Other trading platforms that priced SPACs or IPOs off 2021 multiples face the same reset pressure, since eToro's halved valuation becomes a fresh comparable for anyone underwriting retail-brokerage deals.
Third-order effects
- The sequence — headline SPAC valuation, deadline extension, private down-round, then an eventual IPO years later at a fraction of the original number — is becoming the standard unwind path for the 2021 SPAC vintage, forcing sponsors and target companies alike to treat those valuations as negotiable rather than contractual.
The trend: SPAC-era valuations are being repriced through private rounds and lapsed deadlines before companies reach the public markets at materially lower numbers.