- Augmentums focused approach towards fast growing fintech businesses allows the company to specialise in resources to maximise their earning potential in relation to the financial services sector.
- The specialisation of their investments provides investors with exposure to a focused portfolio.
- Post admission, the company has agreed to acquire minority interests in five portfolio companies which had an aggregate valuation of £33.3m.
- Currently, Augmentums portfolio includes a number of recognisable brands including Zopa, Interactive Investor, Seeders, and Bullion Vault.
- The company has no operating history.
- The new portfolio manager is expecting to receive FCA authorisation, until this time, the company is reliant upon the performance of third party service providers.
- There is no guarantee that the investments made will achieve the investment objective.
- Loss of key staff can be detrimental to company performance.
- The company aims to invest in early stage companies which are more prone to smaller capitalisation and may find it more difficult to grow in periods of low economic growth.
- Some or all investments may be illiquid and require the consent of other interested parties.
- Changes in regulation and tax laws may impact the profitability of the company or require the company to change its operating structure which may be of high costs.
- The company is focused on UK and European companies. The relationship of which may be greatly impacted by Brexit.
- The company is participating in industry specific investment which is of higher risk due to the lack of a diverse portfolio.
- Any risks that threaten fintech businesses will in turn threaten the profitability of Augmentum.