Trading platform eToro says it will go public via SPAC, valuing the company at $10.4B and raising $650M
Quick Take — The investment platform is merging with FinTech Acquisition Corp. V — The SPAC merger follows years of speculation about the fintech firm going public
Context & Ripple Effects
eToro had previously raised $100M for expansion and blockchain R&D at an $800M valuation. The proposed transaction marks a far larger public-market valuation benchmark for the multi-asset trading platform.
The proposed SPAC route did not become eToro's lasting path: related coverage records the scrapped SPAC plan and subsequent $3.5B financing before a later Nasdaq IPO priced the company at about $4.2B.
First-order effects
- eToro gains a planned public-market listing and $650M of new capital through its merger with FinTech Acquisition Corp. V, subject to the transaction closing.
- FinTech Acquisition Corp. V becomes the vehicle through which investors would obtain exposure to eToro at the agreed $10.4B valuation.
Second-order effects
- The $10.4B transaction value becomes a demanding benchmark for eToro's later financing discussions; by 2022, reported funding talks were at a $5B-to-$6B valuation range.
- A failed SPAC process would force eToro to seek private financing or a conventional listing instead, a sequence reflected in its later $3.5B investment agreement.
Third-order effects
- eToro's eventual conventional IPO after abandoning the SPAC illustrates how a proposed SPAC valuation can be replaced by a lower market-clearing valuation when the route does not close.
- For retail trading platforms, access to public capital increasingly depends on sustaining investor support through a full listing process rather than only announcing a SPAC combination.
The trend: eToro's funding history points to public-market access shifting from high-valuation SPAC proposals toward conventional IPO pricing and interim private capital.