Augmentum Fintech supports new FX trading platform

Loopfx is the latest fintech to join the fund’s portfolio

One of Europe’s leading listed fintech funds has announced a multi-million pound investment in London-based peer-to-bank FX Loopfx trading platform.

Augmentum Fintech, which has also backed big fintech names such as Tide, Interactive Investor and equity crowdfunding platform Seedrs, has announced a £2.5 million investment in the FX trading product which allows traders to compete against other asset managers.

The move makes Augmentum the first institutional investor in Loopfx and comes on the heels of several landmark deals for the platform.

In September last year it entered into a business deal with US bank State Street, which manages more than $4 trillion. In early 2024, Factset integrated it into its digital platform.

Loopfx focuses on facilitating large trades – $10m (£7.9m) or more – that have previously been challenging for asset managers and banks by matching market participants without “information leakage” .

The company announced that Augmentum CEO Tim Levene will also join the platform’s board of directors as part of the deal.

Levene commented: “We are increasingly focusing on opportunities in the capital markets space where we see a trend in incumbents choosing to partner and partner with innovative early-stage companies.

“We believe Loopfx offers a textbook example of a fintech operating in capital markets in partnership with blue chip financial institutions.

“Loopfx brings efficiency in trading and price discovery to the FX market, which in turn will help market participants meet best execution requirements.”

The investment will allow Loopfx to accelerate its growth.

The Augmentum Fintech venture capital fund was launched in 2018 as the only public fintech fund.

Listed on the LSE Main Market, the fund has struggled to adapt to the higher rate environment that has forced many private fintechs to engage in funding rounds that lower their overall valuation in order to raise capital.

In December last year, the market capitalization of Augmentum it had fallen short of the total of its £51.8 million in cash and its top three holdings.

Source