Augmentum Fintech boss predicts fintech casualties in 2023 and 2024

Zopa and Tide backer Augmentum Fintech is predicting fintech casualties in 2023 and 2024 and has welcomed the withdrawal of what he dubs “tourist capital” from the sector.

In comments reported by the Times, Tim Levene, CEO of Augmentum Fintech, said the buzz around fintech two years ago had had a distorting impact inflating valuations.

He said some fintechs with “less compelling” prospects were now returning to the market to seek fresh capital.

“I think you’ll see some fall by the wayside,” Levene said, predicting casualties in 2023 and 2024.

His comments come amid a difficult time for fintech of late, with the industry hit by downrounds and job cuts.

But earlier this week Augmentum reported a jump in the value of its portfolio, saying its net asset value had risen 2.4 per cent to 158.9p by the end of March.

Augmentum’s top 10 holdings, which represent nearly 80 cent of its portfolio value, also saw average revenue growth of 117 per cent in the 12 months to the end of March, the firm said.

Levene said: “Despite an increased focus from venture investors on companies displaying a clear path to profitability and reducing cash burn, the growth in our portfolio through the cycle reflects the quality of many of our companies and the unabated advance of digital transformation in the financial services sector."