Augmentum Fintech withdraws on new investments as “price correction” approaches

Fintech venture car Augmentum reported a “strong performance” in its portfolio last year, but said it had withdrawn on new investments over the past six months in the middle of a slide in global technology companies.

In its full-year results today, the London-listed Augmentum said that the portfolio of investments had increased net asset value per share by 19 per cent when the company pumped £ 60.8 million into seven new fintechs and seven existing portfolio companies.

Total invested cash marks a sharp increase from £ 15.5 million invested last year, but bosses said they had withdrawn from investment in the second half of the year, with just £ 16.4 million invested, compared to £ 44.4 million in the first six months of the year.

“We started the year by getting out of Covid and ended it with further economic uncertainty caused by higher inflation and the prospect of rising interest rates that we are now experiencing after the end of the year, all reinforced by a rapidly changing geopolitical situation in Europe,” said CEO Tim Lives in a statement today.

“But uncertain times drive innovation and fintech activity continues to grow, and so do opportunities.”

Levene said he remained bullish in the period ahead as valuations fall and a number of new investors retire, presenting a wave of cheaper investment opportunities among fintech firms.

“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,” he said.

“We must be disciplined in price while continuing to provide favorable contractual access for our shareholders. Our dictum states that not all good business is a good investment.

Augmentum’s balance sheet was strengthened in the last 12 months by the acquisition of abrdn’s retail investment platform Interactive Investor for £ 1.5 billion, leaving £ 42.8 million in Augmentum’s coffers.

Bosses said mobile banking firm Tide, another of Augmetum’s portfolio, increased its market share to seven percent, while Grover completed a € 113.0 million C series of financing rounds.

The shares in the company rose above nine percent after the update.