eToro Aiming For A Billion Dollar Funding Called-Off SPAC Merger

• A year ago, eToro announced its plan to go public on Wallstreet. This was, at the time, expected to be done through the SPAC partnership. 
• In January, Fintech Acquisition Corp V told everyone that the company’s valuation had been cut by over 15% to $8.8 billion.
• eToro believes that going public right now is not the best decision. Instead, they will be far better off raising funds privately.

The Merging Dilemma

eToro, the Israeli multinational and social trading company, was in talks of merging with the black check company FinTech Acquisition Corp V. The deadline given to the company to document the completion of the SPAC merger passed last Thursday, June 30. 

This implies that the company has decided to remain private as of now. This is about the fact that the company is in the middle of the negotiations for a private equity funding round which will lie somewhere between 800 million dollars and 1 billion dollars. 

This investment is supposed to be at a valuation of 5 billion Dollars.

A year ago, eToro announced its plan to go public on Wallstreet. This was, at the time, expected to be done through the SPAC partnership.

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Decision To Remain Private

But as the saying goes- “We live in a temporary world where nothing is permanent.” The intention was shut down due to a protracted prospectus and regulatory process. 

This led to the corporation being unable to complete the original merger, which was meant to be evaluated at a 10.3 Billion Dollar mark.

In January, Fintech Acquisition Corp V told everyone that the company’s valuation had been cut by over 15% to $8.8 billion. Also, the corporation was expected to get funding worth $650 million. This number got reduced to 443 million USD.

This was because eToro believes that going public right now is not the best decision. Instead, they will be far better off raising funds privately. This is another example of how big a company can decide to make going against its plans to protect the corporation’s best interests.