Augmentum Fintech is still positive on fintech, despite reduced investments

The listed fund has reduced new investments in fintech companies over the past year from £ 44.4 million to £ 16.4 million.

Image source: Augmentum Fintech / Augmentum Fintech

The listed fintech fund Augmentum Fintech said today that belief in “the potential of the sector is as strong as ever”, despite the fact that they cut fintech investments in the second half of the year.

Support for fintech, including Zopa and Tide, reported that they have invested £ 16.4 million in fintech in the second half of the fiscal year ending 31 March 2022, a significant decrease compared to the £ 44.4 million they invested in the first half of period.

Tim Levene, CEO of Augmentum Fintech, said that economic uncertainty and the changing geopolitical situation in Europe have contributed to the decline in fintech investments.

Levene also flagged up new fintech investors who were willing to “pay any price to build exposure” as another reason to curb investment.

He added: “We are beginning to see some of this money leave the sector, which will continue to lead to a healthy correction in entry prices later this year and beyond.

“We must remain disciplined in price while continuing to provide favorable contractual access for our shareholders.”

“Our belief in the potential of the sector is still as strong as ever, but the investment bar must remain high.”

Augmentum Fintech, the UK’s only listed investment company focusing exclusively on the fintech sector, reported that the portfolio of investments increased Net Asset Value (NAV) per share after the performance fee by 19 percent to 155.2p, compared to 130.4p. the year before.

During the year, it invested £ 60.8 million in seven new fintechs and seven existing fintechs, compared to the previous year when it invested £ 15.4 million in two new fintechs and 11 existing firms.

The total equity raised from the fintechs portfolio came to £ 1.3 billion.

Highlights of the year include the portfolio company Interactive Investor being acquired by Abrdn for £ 1.5bn ‘; Grover completes a financing round of 113 million euros in series C and Tide increases its market share of British SME banking services to 7 percent.

Augmentum currently sits at approx. 60 million pounds of “dry powder” – cash that has not yet been invested – a large part of this comes from the sale of Interactive Investor.

Neil England, Chairman of the Board of Augmentum Fintech added: “The company’s portfolio of investments has again performed very well with an increase in NAV) per share after a performance fee of 19 percent.

“However, the share price and the total shareholder return do not reflect the strong development of the portfolio and have been affected by the global decline in listed technology shares and associated market sentiment.”

In May this year, Augmentum Fintech together with Tencent invested in fintech Previse.

The round was led by Tencent, with the participation of existing investors including Reefknot Investments and Augmentum Fintech.