Fintech venture vehicle Augmentum reported a “strong performance” in its portfolio last year but said it had pulled back on fresh investments in the past six months amid a rout in global tech firms.
In its full year results today, London-listed Augmentum said its portfolio of investments had driven net asset value per share up by 19 per cent as the firm pumped £60.8m into seven new fintechs and seven existing portfolio companies in the .
The total cash invested marks a sharp increase from the £15.5m invested last year, but bosses said they had pulled back from investment in the second half of the year, with just £16.4m invested, compared to £44.4m in the first six months of the year.
“We began the year coming out of Covid and ended it with further economic uncertainty caused by higher inflation and the prospect of increasing interest rates which post year end we now are experiencing, all compounded by a rapidly changing geopolitical situation in Europe,” said boss Tim Levene in a statement today.
“But, uncertain times drive innovation and activity in fintech continues to grow and so do the opportunities.”
Levene said he remained bullish for the period ahead as valuations drop and a slew of new investors pull back from the space, presenting a wave of cheaper investment opportunities among fintech firms.
“We are starting 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 remain disciplined on price while continuing to deliver advantaged deal access for our shareholders. Our dictum holds that not every good business is a good investment.
Augmentum’s balance sheet was bolstered in the past 12 months by the acquisition of retail investment platform Interactive Investor by abrdn for £1.5bn, putting £42.8m back in Augmentum’s coffers.
Bosses said mobile banking firm Tide, another of Augmetum’s portfolio, grew its share of the market to seven per cent, while Grover completed a €113.0 million Series C funding round.
Shares in the firm jumped over nine per cent following the update.