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Private Equity
aliumcap.com

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Investments

28

Portfolio Exits

4

Funds

1

About Alium Capital

Alium Capital is a private equity fund that specializes in equities in pre-IPO investment opportunities as well as focusing on capital raising's & IPO's in the small / emerging company segment.

Alium Capital Headquarter Location

Level 8, Kyle House 27-31 Macquarie Place

Sydney, New South Wales, 2000,

Australia

+61 2 9247 1006

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Latest Alium Capital News

‘In its infancy:’ Neobanks, VCs say bank disruption isn’t over

Jul 10, 2022

Share Australian fintech investors and operators have warned incumbent banks that it is too early to celebrate the defeat of the neobank wave after the recent demise of Volt , saying there is still plenty of scope for agile start-ups to out-manoeuvre larger rivals. Last week executives from Australia’s largest banks reacted to the collapse of Volt, by saying they believed that - along with start-up funding limitations - they have improved their own technology and adopted start-up ideas so effectively that it is increasingly difficult for start-ups to take customers off them. Revolut Australia chief executive Matt Baxby says the heavily backed UK neobank still has covetous eyes on the Australian market. However, Matt Baxby, the managing director of UK-based neobank Revolut’s Australian operations said there had been no change to its intentions to obtain a full local banking licence, and that it was still confident of making a major dint in the big banks’ market share. “In the 35 countries that Revolut operates in, our experience has always been that competition brings choice, and choice brings better value and a better experience to customers,” he said. “Neobanks and fintechs inherently have the ability and agility to develop technology and innovate banking at a much faster pace than the big banks, and with an improved focus on removing friction or solving genuine problems.” Advertisement Mr Baxby said that he didn’t doubt that the major banks have lifted their game with respect to technology and banking, but that it was the presence of neobanks and fintechs in Australia that had been the catalyst for the incumbents’ increased investment. He said that after the failure of Volt, and earlier collapse of Xinja at the end of 2020 , it seemed that it was mainly a lack of capital funding in Australia that has been a major hurdle for home-grown neobanks. “The neobank experiment most certainly hasn’t failed, it is still in its infancy.” — Rajeev Gupta, Alium Capital. Two other local neobanks were acquired by incumbent players last year; 86 400 by NAB , and Up by Bendigo and Adelaide Bank, while Judo Bank remains an ASX-listed neobank. “The big banks have enjoyed a concentrated market for a very long time, and breaking through the incumbents requires a lot of commitment,” Mr Baxby said. “Whilst taking deposits and lending them out is a tough business model to make work from the standing start, there are plenty of examples in Australia of fintechs and others operating in the banking space that are making a meaningful difference. Advertisement “Neobanks looking to the Australian market should have a real sense of how they are different to the incumbents, and where they can offer real value to Australian customers. There is still a burning need to grow competition in Australia.” Alium Capital’s Rajeev Gupta says there is still plenty of scope for successful start-ups to disrupt Aussie banks. Louie Douvis Alium Capital partner Rajeev Gupta would be excused for crowing after the collapse of Volt last week, having publicly described valuations of local neobanks as “delusional” back in 2019. However he says there remains confident that properly targeted fintech’s such as Spriggy and Alex Bank, which Alium backs will have big success. Back in 2019 he said the neobanks weren’t an attractive enough proposition to switch from the Big Four banks, and now said it will require the “second generation” of neobanks to learn from the problems of the first. “Like all new and disruptive models, the fabled first mover advantage is often a disadvantage. It’s better to let systems, regulators and the competition digest the disruption,” Mr Gupta said. “We believe that Neo’s most certainly do have a position in the market, but just being a marketing machine that spends oodles on customer acquisition costs to get a customer isn’t really a strategy.” Advertisement Mr Gupta said incumbent banks had done an “exceptional job” of transforming themselves digitally, but there was still a long way to go for everyone. He said the failures did not mean the end of fintech start-ups challenging the business models of Australia’s biggest banks, and that tactical and strategic players would be able to serve Australian consumers and businesses in a more “asset light, neobank way.” “The neobank experiment most certainly hasn’t failed, it is still in its infancy, and this is a much needed shake-out,” Mr Gupta said. “The players that have failed raised oodles of monies and focused on both marketing and technology. The technology is advanced, but if you market to capture a customer at a high cost, generating a profitable consumer can be a battle that you will not win. “It seems that marketing expenses was their undoing. The plan should be to go far not fast.” AirTree Ventures partner James Cameron said there were numerous fast-growing local fintech firms that have found ways to compete successfully with the banks, without the need to become authorised deposit-taking institutions (ADIs) themselves, such as Athena, Zepto and Airwallex, which AirTree backs. Advertisement AirTree Ventures partner James Cameron (r) with Zepto CEO Chris Jewell. He said he also believed the market for neobanks was still in its infancy and constantly evolving, with the current funding conditions leading to consolidation across the sector. Mr Cameron said that, while Volt announcing it’s shutdown was a tough day for its staff and the Australian fintech community, it was not reflective of the broader outlook for fintech. He said Volt had built some strong infrastructure, and would likely find willing buyers for its underlying tech. “Consumer focused neobanks are not an easy category of company to build - the combination of the caps on interchange revenue in Australia, high capital requirements for ADI holders and heavy competition has meant that it has been more difficult in Australia than in some other parts of the world - particularly the UK and US,” Mr Cameron said. “However, it doesn’t fundamentally mean neobanks as a category can’t be successful in the Australian market. There are some sub sectors that are emerging as fruitful areas for young companies - in particular SME banking and banking infrastructure software.” Paul Smith edits the technology coverage and has been a leading writer on the sector for 20 years. He covers big tech, business use of tech, the fast-growing Australian tech industry and start-ups, telecommunications and national innovation policy. Connect with Paul on Twitter . Email Paul at psmith@afr.com Save

Alium Capital Investments

28 Investments

Alium Capital has made 28 investments. Their latest investment was in Academy Xi as part of their Series C on October 10, 2021.

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Alium Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

10/4/2021

Series C

Academy Xi

$10.18M

No

3

9/23/2021

Private Equity

Atmo Biosciences

$7M

Yes

3

9/7/2021

Series B

Verrency

$4.81M

Yes

1

7/7/2021

Series B

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$99M

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10

2/1/2021

Series C

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$99M

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10

Date

10/4/2021

9/23/2021

9/7/2021

7/7/2021

2/1/2021

Round

Series C

Private Equity

Series B

Series B

Series C

Company

Academy Xi

Atmo Biosciences

Verrency

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Amount

$10.18M

$7M

$4.81M

$99M

$99M

New?

No

Yes

Yes

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Co-Investors

Sources

3

3

1

10

10

Alium Capital Portfolio Exits

4 Portfolio Exits

Alium Capital has 4 portfolio exits. Their latest portfolio exit was Beforepay on January 16, 2022.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

1/16/2022

IPO

$99M

Public

8

12/2/2020

IPO

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$99M

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10

3/4/2020

Acquired

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$99M

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10

12/11/2019

IPO

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$99M

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10

Date

1/16/2022

12/2/2020

3/4/2020

12/11/2019

Exit

IPO

IPO

Acquired

IPO

Companies

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Valuation

$99M

$99M

$99M

$99M

Acquirer

Public

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Subscribe to see more

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Sources

8

10

10

10

Alium Capital Fund History

1 Fund History

Alium Capital has 1 fund, including Alium Alpha Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

8/25/2017

Alium Alpha Fund

Diversified Private Equity

Open

$79.1M

1

Closing Date

8/25/2017

Fund

Alium Alpha Fund

Fund Type

Diversified Private Equity

Status

Open

Amount

$79.1M

Sources

1

Alium Capital Team

1 Team Member

Alium Capital has 1 team member, including current Founding Partner, Michael Considine.

Name

Work History

Title

Status

Michael Considine

Founding Partner

Current

Name

Michael Considine

Work History

Title

Founding Partner

Status

Current

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