Etoro-Report.Pdf

FinTech | Founded 2007 | Israel | etoro.com/

MARKETPLACE

TYPE OF SECURITY: Equity - Direct Ownership/SPV HIGHLIGHTS

DEAL SIZE: • Etoro is available in more than 140 countries.

TBD • The company hit 13 million registered users globally in 1 MINIMUM INVESTMENT: 2020 .

$250,000 • The average age of the Etoro user base is 34 and is pre- KEY INVESTORS: dominantly male (89%)

Aglae Ventures

SBI Holdings The Company

Korea Investment Partners Etoro is a multi-asset broker founded in Israel in 2007. It has offices in Israel, Cyprus, UK, US and Australia. Etoro’s offer- Bracket Capital ings include stocks, commodities, CFDs, Forex and has re- CommerzVentures cently expanded into cryptocurrency as well and has achieved success in European and Asian countries. What Hinge Capital sets Etoro apart from its competitors is their copy trading Spark Capital platform called “social trading” which is quite popular among users2.

According to recent reports, the company has tripled its valuation to $2.5 billion from a $800 million valuation following its last funding round back in 20183. According to various sources the company is preparing for an IPO in late 2021 at a valuation of $5 billion and has been in contact with investment bank Goldman Sachs4.

CONTACTS Premindra Rajaram Arjun Vijayan Director of Partnerships [email protected] [email protected] +971 52 870 6325 +971 55 261 7309 GRIP (DIFC) Ltd. - TELEPHONE: +971 4 564 2244 | EMAIL : [email protected] FinTech | Founded 2007 | Israel | etoro.com/

MARKETPLACE

Market Analysis

The past year has been a game changer for commission free brokerages such as Eto- ro and Robinhood as it has been reported that the total number of average daily trades at major brokerages has risen to a record 3.4 million trades — a 4x rise from the previous year’s levels and 62% more than the previous quarter5. There has also been a rise in the number of retail traders in the market and they make up more than 20% of US equity traders now, doubling from about 10% last year6.

Etoro growth in registered users till end of 2017

Source: Etoro Management

MARKETPLACE

Etoro user base by country

Financials (for 12 months ending Dec 2018)7

• Revenue of around 7.5m, total operating profit of 3.21m and EBITDA of 3.254m • The company enjoyed a stunning EBITDA % Growth of 1430% and Revenue % Growth of 153%

• Etoro has a Current ratio of 1.92 and Quick ratio of 1.54

MARKETPLACE

Sources and References

1. https://www.businessinsider.com/etoro-hit-13-million-registered-users-globally- 2020-5 2. https://www.etoro.com/about/ 3. https://www.financemagnates.com/forex/brokers/etoro-triples-its-secondary- market-valuation-to-2-5-billion 4. https://www.timesofisrael.com/online-trading-platform-etoro-reportedly- planning-ipo-at-5b-valuation/ 5. https://markets.businessinsider.com/news/stocks/retail-investors-quarter-of- stock-market-coronavirus-volatility-trading-citadel-2020-7-1029382035

6. https://www.cnbc.com/2020/07/21/e-brokers-td-ameritrade-interactive-brokers- sustained-record-retail-trading-volumes-in-the-second-quarter.html

7. Etoro Pitchbook report

MARKETPLACE

DISCLAIMER

THE INFORMATION AND ANY DISCLOSURES PROVIDED IN THIS PRESENTATION ARE IN SUMMARY FORM AND HAVE BEEN PREPARED SOLELY FOR INFORMATIONAL PURPOSES ONLY. THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO INVEST. WE MAKE NO WARRANTY OR REPRESENTATION, WHETHER EXPRESS OR IMPLIED, FOR THE ACCURACY, COMPLETENESS OR USEFULNESS OF ANY INFORMATION DISCLOSED. BY ACCEPTING THIS DOCUMENT AND/OR ATTACHMENTS, YOU AGREE THAT YOU OR THE ENTITY THAT YOU REPRESENT MEETS ALL IN- VESTOR QUALIFICATIONS. AN INVESTMENT IN THIS COMPANY IS SPECULATIVE AND INVOLVES A HIGH DEGREE OF RISK. PROSPECTIVE INVESTORS ARE STRONGLY URGED TO CONSULT WITH THEIR OWN FINANCIAL, LEGAL AND TAX ADVISORS BEFORE INVESTING. THE COMPANY’S OPERATIONS INVOLVE SUBSTANTIAL RISKS, INCLUDING THE LOSS OF PRINCIPAL, AND NO ASSURANCE CAN BE GIVEN THAT THEIR STATED OBJEC- TIVES WILL BE ACHIEVED. GUIDELINES AND OBJECTIVES MAY VARY DEPENDING ON MARKET CONDI- TIONS. CERTAIN INFORMATION CONTAINED IN THIS MATERIAL CONSTITUTES FORWARD-LOOKING STATE- MENTS, WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “ANTICIPATE,” “TARGET,” “PROJECT,” “ESTIMATE,” “INTEND,” “CONTINUE,” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOL- OGY. SUCH STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE OR ACTIVITIES. DUE TO VARI- OUS RISKS AND UNCERTAINTIES, ACTUAL EVENTS OR RESULTS OR THE ACTUAL PERFORMANCE OF THE COMPANY MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD- LOOKING STATEMENTS.