Investment characteristics

In order to capitalise on the significant market opportunity, Augmentum Fintech believes its investment strategy should not be one dimensional. Therefore the Company invests in four different areas of opportunity:

• Series A
  • Augmentum can use its propriety network to gain unique access to exciting and fast growth businesses in the sector before valuations inflate
    
• Series B
  • This is where the current equity gap is the greatest, and where the Company sees the least competition for deals

• Value / Down Rounds
  • Augmentum can capitalise on companies that have not yet achieved expectations despite early raises of capital at significant valuations, and who may now need to restructure their capital base to crystallise their long-term growth potential

• Secondary
  • Lack of liquidity in the market can create a need for founders, angel investors and funds to seek return on their investment before the opportunity has reached maximum potential. Augmentum’s fund structure allows it to buy secondary in exciting companies where other traditional Venture funds can’t

Augmentum’s investments, whether primary or direct secondary transactions, typically:

• Secure a significant minority stake with board participation and rights in portfolio companies;
• Allow the Company to participate in later follow-on funding rounds in order to minimise any dilution where possible; and
• Potentially require the Company to invest £5 million to £15 million of equity over the course of several funding rounds in primary and secondary transactions.

Augmentum is an active investor and believes resolutely in adding value to its portfolio companies. The Company takes an active non-executive role in its companies and works hard to exert positive influence while still maintaining the distance necessary to keep perspective of the greater goal of value enhancement. There are number of key areas where the Company believes it can have most impact:

• Helping scale the Management Team
• Refining and driving the key performance indicators
• Organic growth and acquisition
• Business development and market entry
• Managing underperformance
• Investment exit review