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Israeli brokerage app eToro is set to go public through a merger, backed by SoftBank and banking entrepreneur Betsy Cohen, that will value the company at $10 billion, per Reuters.
The deal with Cohen's SPAC (special-purpose acquisition company) FinTech Acquisition Corp V will include a $650 million common share private placement from investors including SoftBank's Vision Fund 2, Fidelity Management & Research, and Wellington Management.
SPACs or "blank check companies" are publicly-listed funds that exist to take other companies public by acquiring them. DraftKings, Fisker, and QuantumScape all went public via SPAC.
EToro was founded in 2007, but only expanded into the United States in 2018. It has approximately 20 million users across 140 countries, including the United Kingdom, Australia, Germany and Switzerland. Users are able to invest in stocks, exchange-traded funds, as well as cryptocurrencies. The app's primary competitor is Robinhood.
The app brands itself as a "social trading" network. A "Copy People" option allows users to locate people that match their trading and investing needs, according to the website. An "Editor's Choice" section also presents popular investors that have recently been trading.
"Consumers all over the world should have access to the tools they need to participate in cryptocurrency markets, regardless of their expertise," CEO and c0-founder of EToro Yoni Assia said in 2018.