This week, online trading company, eToro, announced it closed a funding round of US$15 Million led by Spark Capital. The company plans to fuel international growth and continue to evolve eToro's social trading platform. eToro boasts the world's largest online investment network and has doubled its active user base over the past year, now with over 2 million registered users in over 140 countries.
eToro plans to use the capital injection to accelerate innovation and continue to realise its vision of disrupting the financial markets. Over the past year, eToro managed to recruit some of the industry's top talent, adding to its leadership role in defining the standard for social trading. As a result eToro has doubled its workforce within 12 months, reaching over 200 employees in Europe, United States, Australia, and Israel, where its R&D center is located.
eToro trading volumes doubled in size within the last 12 months, and the number of traded positions in the network has increased by more than 500%. This explosive growth is attributed to eToro's award winning CopyTraderâ„¢ that allows any user to automatically copy the entire trading activity of the best performing traders in the network, thus delivering better success rates and higher average returns per trade. CopyTraderâ„¢ has exceeded the anticipated adoption rates and is now used by the majority of eToro's active user base. Users engaging in copy trading achieve win ratios of over 80%, which is dramatically higher than the industry standard, resulting in higher trading performance.
In Australia, the active user base has grown by 110% within the last 12 months and adoption for copy trading has reached 56 %.
'The internet is breaking down long-standing business models across various well-established industries. Just as our portfolio companies, Twitter, Tumblr and foursquare have reinvented the way people interact online, eToro is now leading the charge to disrupt yet another industry, the financial services market,' said Santo Politi, General Partner at Spark Capital.
"We are very pleased to have Spark Capital on board to help us continue to expand and lead the social trading revolution, " said eToro CEO, Johnathan Assia. "As the largest investment network, we constantly push the boundaries of design and technology to harness the wisdom of the crowds for our users helping them trade and invest online more intelligently, yielding outstanding results.'
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