Listed fintech fund Augmentum has bumped up the valuation of its portfolio this year in a sign that values are beginning to stabilise after a sharp slump over the past two years.
The London-listed venture vehicle, which holds stakes in digital lender Zopa Bank and small business financing platform Tide, said the overall value of its top ten holdings — which make up about 82 per cent of its portfolio — grew to £198m in September, up from £182m in March.
Augmentum marked up its largest stake in Tide to around £42m as of September after it judged the firm fell to around £36m in March.
Zopa meanwhile, which has touched profit for the first time this year and is gunning to float as soon as next year, has grown in value to some £33.9m, up around £3m in March.
The upgrades come after a torrid two years for fintech valuations in which valuations have cratered against a torrid backdrop for global funding.
In a statement today, Augumentum chief Tim Levene said the market was beginning to show the “early signs of a shift in sentiment” as a rate-rising cycle from central bankers began to stabilise.
“This signals a cautious yet hopeful economic outlook,” he said.
Augmentum has dramatically reined in its pace of investment against a tricky backdrop for funding. The firm made no additions to the portfolio during the six-month period but committed £6.9m to three of its existing portfolio companies.
Levene said the firm “continue to apply a rigorous approach to valuations” and had made five exits in total “on par with previously reported valuations”.
The firm offloaded its stake in pension fintech Cushon to NatWest earlier this year for £22.8m however, with an uplift of 47 per cent on the previous valuation.