REG-Augmentum Fintech Plc: Portfolio Update and New Investment in Insurtech

Augmentum FintechAnnouncement

30/01/2023 07:15

30 January 2023

Augmentum Fintech plc

Portfolio Update and New Investment in Insurtech

Augmentum Fintech plc (LSE: AUGM) (the “Company” or “Augmentum”),
Europe’s leading publicly listed fintech fund, provides an update on its
portfolio and announces that it has led a funding round into Berlin-based
cyber insurance platform Baobab, with a €3 million investment.

This is Augmentum’s first investment in the insurtech space and the
Company’s second investment in Germany, following its investment in Grover,
the country’s leading consumer technology subscription platform.

Baobab (www.baobab.io) is a pioneer in the provision of European cyber
insurance for SMEs. With capacity provision from Zurich, Baobab uses a novel
approach to underwriting, pricing and risk mitigation, and works with leading
SME cyber security providers to prevent breaches for its insured customers.

Learn more about Baobab and Augmentum’s rationale for investing in the
company at https://medium.com/@augmentum/baobab-why-we-invested-14d8d4c9eec4.

Portfolio Update

The portfolio now comprises 25 private fintech companies, diversified across
fintech verticals, stages of maturity and geographies. Despite the current
public markets volatility, the Portfolio Manager believes the portfolio
continues to provide significant growth potential and the top 5 portfolio
companies have an average Year over Year revenue growth rate of 102%(1).

Find a selection of updates from across the portfolio below:

Tide (www.tide.co, 11.9% of portfolio(2)). In November 2022, the UK’s
leading SME banking provider acquired Funding Options, a leading UK
marketplace for SMEs seeking business finance, subject to FCA approval. The
merged credit business will give Tide’s 475,000 customers access to a wider
range of credit options and creates one of the UK’s biggest digital
marketplaces for SME credit. In December 2022, Tide launched in India with two
business banking solutions – the Tide Business Account and its RuPay-powered
Tide Expense Card.

Zopa (www.zopa.com, 11.1% of portfolio(2)). Following digital bank Zopa
becoming profitable in April 2022, just 21 months after securing its banking
licence, the company has now surpassed £3 billion in deposits across its
Smart Saver and Fixed Term Saving offerings.

Gemini (www.gemini.com, 5.3% of portfolio(2)). Digital asset exchange and
financial services platform Gemini had a product marketing partnership with
Genesis Global, a digital asset lending company which has entered Chapter 11
proceedings in the US. Gemini’s ongoing engagement with Genesis Global is
solely as an agent acting on behalf of Gemini users who hold outstanding
claims against Genesis Global. Augmentum has seen no information to date that
would lead them to believe their holding value in Gemini requires revision.
Augmentum has a level of downside protection on its investment in Gemini and
continues to closely engage with management.

Anyfin (www.anyfin.com, 3.4% of portfolio(2)). The Stockholm-based consumer
debt refinancing platform confirmed in January 2023 that it had completed a
US$30 million Series C funding round led by Northzone. Augmentum participated
alongside new investor Citi Ventures and other existing investors. Anyfin’s
mobile app has been downloaded more than 1 million times, with more than
500,000 downloads in 2022. With this new capital, Anyfin plans to expand
across Europe as well as strengthen its product suite in existing markets.

Farewill (www.farewill.com, 2.8% of portfolio(2)). The digital, all-in-one
financial and legal services platform for dealing with death and after-death
services has raised £4.75 million with participation from investors including
Augmentum and Highland Europe. Farewill was named National Will Writing Firm
of the Year for a fourth consecutive year at the 2022 British Wills and
Probate Awards.

Wayhome (www.wayhome.co.uk, 1.7% of portfolio(2)). The UK’s first provider
of gradual home ownership, through the combination of capital and rental
payment, crossed the milestone of completing the purchase of its first 100
homes. Wayhome also completed an oversubscribed £3.2 million crowdfunding
round in November 2022.

Tim Levene, CEO of Augmentum Fintech, said: “We are pleased to lead
Baobab’s new investment round. We have strong conviction that new risks are
driving opportunities in insurtech and cyber represents a fast growing and
underpenetrated market. The team demonstrates strong execution capabilities in
developing a solid product, building out a rapidly expanding network of broker
partners across Germany and have secured backing from a leading tier 1
capacity provider in Zurich. We look forward to working with Vincenz Klemm and
the entire Baobab team as they build out this new European category leader in
cyber insurance for the underserved SME market”.

Notes:

(1) As at 30 November 2022.

(2) Unaudited portfolio percentage values as at 30 September 2022.

Enquiries:

 Augmentum Fintech Tim Levene, Portfolio Manager Georgie Hazell Kivell, Marketing and IR  +44 (0)20 3961 5420 georgie@augmentum.vc  
 Quill PR Press and Media                                                                 +44 (0)20 7466 5050 press@augmentum.vc    
 Peel Hunt LLP Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)                    +44 (0)20 7418 8900                       
 Singer Capital Markets Harry Gooden, Robert Peel, Alaina Wong (Investment Banking)       +44 (0)20 7496 3000                       
 Frostrow Capital LLP Paul Griggs, Company Secretary                                      +44 (0)20 3709 8733                       

About Augmentum Fintech

Augmentum invests in fast growing fintech businesses that are disrupting the
financial services sector. Augmentum is the UK’s only publicly listed
investment company focusing on the fintech sector in the UK and wider Europe,
having launched on the main market of the London Stock Exchange in 2018,
giving businesses access to patient capital and support, unrestricted by
conventional fund timelines and giving public markets investors access to a
largely privately held investment sector during its main period of growth.

Neither the content of any website referred to in this announcement nor the
content of any website accessible from hyperlinks is incorporated into, or
forms part of, this announcement.



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