Augmentum Fintech backs new FX trading platform
One of Europe’s leading listed fintech funds has announced a multimillion-pound investment in London-based peer-to-bank FX trading platform Loopfx.
Augmentum Fintech, which has also backed big fintech names like Tide, Interactive Investor and the equity crowdfunding platform Seedrs, has announced a £2.5m investment into the FX trading product that allows traders to match with other asset managers.
The move makes Augmentum the first institutional investor in Loopfx and comes in the wake of several landmark deals from the platform.
Loopfx focuses on facilitating large trades—$10 m (£7.9m) or more—which had in the past been challenging for asset managers and banks by matching market players without “information leakage.”
The firm announced that Augmentum’s CEO, Tim Levene, will also join the platform’s board as part of the deal.
Levene commented: “We are increasingly focusing on the opportunity in the capital markets space where we see a trend in incumbents opting to collaborate and partner with innovative early-stage companies.
“We believe Loopfx offers a text-book example of a fintech operating in the capital markets in partnership with blue chip financial institutions.
“Loopfx brings efficiencies in trading and price discovery to the FX market, which in turn will help market participants comply with best execution requirements.”
The investment will allow Loopfx to accelerate its growth.
Venture capital fund Augmentum Fintech was launched in 2018 as its only public fintech fund.
Listed on the LSE’s main market, the fund has struggled to adapt to the higher rate environment that has forced many private fintechs to commit to funding rounds that lower their overall valuation in order to raise capital.
In December of last year, Augmentum’s market capitalisation had fallen below the total of its £51.8m of cash and its top three holdings.