Founded in 2018, Gatsby offers commission-free options and stock trading designed to appeal to a younger demographic. It was founded by Jeff Myers, Ryan Belanger-Saleh, Davis Gaynes and Peter Quinn, the latter two of whom eToro says will make the move across. It comes less than six months after the New York-based fintech raised US$10mn in a Series A round including Techstars Ventures and Beta Bridge Capital.
The acquisition is a key step in eToro’s efforts to diversify its offering for US users, where it faces competition from the likes of Robinhood and Webull and is currently focused on crypto and stocks. Gatsby’s integration will support eToro’s goal of providing multi-asset investment tools to US users as it continues to grow its social investing network through education, innovation and enabling simple access to the assets and tools people want.
Gatsby deal allows eToro to scale its US business
Yoni Assia, eToro’s CEO and Co-founder, says: “We’ve seen a seismic shift in the balance of power away from traditional finance institutions towards the retail investor. The internet has democratised financial information and a sea change has taken place, empowering more everyday investors – particularly Gen Z and Millennials – to trade and invest. These retail investors are looking for opportunities to generate returns in today’s bear market.
“Against this backdrop, we are incredibly excited to welcome the Gatsby team to the eToro family. We have a shared mission of empowering investors through simple, transparent investing tools. Scaling our US business is a strategic focus for eToro and through Gatsby we can provide US users with access to a safe and simple way to trade options, which we know are particularly attractive in challenging markets.”
And Ryan Belanger-Saleh, Gatsby’s Co-CEO, adds: “We came up with the idea of Gatsby while we were in London. We were convinced there was an opportunity for us to demystify markets and provide an options platform focused on the needs of a new generation of US traders. We’ve always been huge fans of the social aspects of eToro. They’ve really been the pioneers of social investing and we’ve always thought of them as the cool older sibling we’d love to hang with! In terms of product and culture, it’s a great fit and we’re really excited about the next chapter in our shared future.”
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