By Andy Silvester
Tim Levene founded Crussh and Flutter.com – and is now at the helm of Europe’s largest listed VC fund dedicated to fintech. He tells City A.M. about his career – and some long lunches in Moscow.
What was your first job?
I managed to get a summer job in the City in 1990 at Hambros Bank, writing reports on Russia and the potential economic opportunity post Gorbachev. I was doing my A Levels at the City of London School, one of which was Russian which was a little unusual in 1990. UK banks were keen to build their knowledge of eastern Europe, and they were looking for someone who had a strong interest in Eastern Europe and was willing to research in a dingy backroom for a couple of months, and at that time it’s fair to say the competition for places was not particularly strong.
What was your first job in financial services?
I’ve never had a job in traditional financial services, other than my summer job. My first full time role post University was with Bain and Company, initially in Moscow and then in Sydney. As much as it was a great learning experience, I realised soon enough that corporate life was not going to be the long-term career for me.
When did you first know you were in the right job?
When we started Flutter.com in 1999 (with 3 former colleagues from Bain) I realised then that building businesses with talented people was going to be the future career direction for me. Being an entrepreneur is full of ups and downs, but you can’t beat the highs when things go right. I have always been a fiercely independent person and to this day feel an enormous personal responsibility to do everything I can to help a business succeed. It doesn’t always go to plan, but there is no better job working with dynamic founders who want to drive truly disruptive change in Financial Services.
Who is the City of London figure you most admire?
I’ve been lucky enough to have had some fantastic mentors over the years, from my father, Peter Levene to Michael Marks of New Smith Court legend. However, I am forever grateful to Jacob Rothschild who despite declining to invest in Flutter.com in 2000 when I butchered the pitch, did keep an eye on what we were building. I met him many years later, and when I suggested to him that technology was going to finally disrupt financial services post the 2008 Financial crisis, he challenged me to do something about it and ultimately with his encouragement, RIT Capital backed me to launch my first VC fund in 2010.
What’s one thing you love about the City of London…
The City of London is an incredible square mile with a rich history, diverse culture, abundant energy, and a wealth of talent. It continues to evolve, and I believe it is going through a significant transformation that will last for many years.
When I lived in Moscow, I learnt how to drink like a Russian – but I struggled to add value in the office after lunch
… and one thing you would change?
I would like to see a busier City on Fridays. The post-covid “work from home” malaise continues to prevail, affecting small businesses that make up over 95% of City businesses. They need strong footfall to sustain their business, which is why the Destination City initiative driven by the City of London Corporation is crucial in getting more people into the City seven days a week.
What’s been your proudest achievement?
Besides my family, I am hugely proud to have launched the only listed fintech venture fund in the UK and one of the only globally. It has not been a straightforward journey but we have had some great successes to date and I am excited about many of the fintechs we have in our portfolio. I am confident that the next couple of years will see our patient investors rewarded.
What’s your most memorable moment?
When I lived in Moscow in 1993, I was working for Bain who were advising the Russian Government at the time on small business privatisation strategy. There were a handful of rather conservative but experienced US consultants who had been flown into Russia to lead the team. As a country coming out of communism, there had been little to no exposure as to how “business” was done in the US. Putting the Russians and Americans together in a meeting room was a cultural challenge, so the only way of getting cut through was to meet over lunch or dinner. This usually involved a great deal of bad food and a lot of very good vodka. As the young Englishman in the team, the US team decided I would be the designated drinker and spare their blushes by leading the toasts in Russian. It’s fair to say I learnt how to drink vodka like a Russian but struggled to add any value in the office after lunch.
We’re going for lunch and you’re picking – where are we going?
I rarely go out for lunch so sadly can recite the full itsu or Pret menu on demand. However, if I get my priorities right then I’ll take you to Coya City if you fancy Peruvian or across the road to Entrecote for a decent steak and a bottle of red.
And do you have a favourite post-work watering hole?
I don’t think any major city has the history and character of City of London pubs. I would give The Ship in Talbot Court (off Eastcheap) a try. 17 Century, decent selection of craft beers and gins (my choices) but get there early if you want a seat!
Are you optimistic for the rest of 2023?
I am a venture capital investor, I am always inherently optimistic with a glass half full attitude. I think the second half of 2023 can’t be any worse than the first half, but it’s fair to say that we’ve not yet seen the full impact of the fallout from the asset bubble post covid and the consumer impact as a result of inflation/high interest rates. Nevertheless, the harder it gets to pick winners the more excited I become as an investor, as the next 5 years will be a truer test of identifying real outliers rather than piggybacking on hype.
Give us one bold prediction for the fintech sector this year?
You will see more large incumbent financial institutions acquire or attempt to acquire some “best in class fintechs.” Their balance sheets have swelled, and their digital transformation strategies have become mired with challenges. With valuations moderating, it becomes an imperative for the incumbents to look beyond their own attempts to disrupt from within.
Where’s home during the week?
I live near Hampstead Heath and am a proud Londoner and always will be. Despite living all over the world, I have never lived anywhere in London that doesn’t have a NW at the start of the postcode.
And where would we find you on a Saturday afternoon?
My great grandfather opened a shop on the Fulham Road in the 1880s so as a family we’ve been afflicted Chelsea fans since the first season in 1905. I still go with my father, sister and my 3 children, although this season I would rather be anywhere else than Stamford Bridge:they have been truly atrocious, arguably the worst in history considering their individual talent. I have seen some poor teams since my first season in 1978 so that is saying something!
You’ve a well-deserved two weeks off – where are you going?
Sea Island, Georgia, USA. I’ve been going there since I was a child, and it is a truly special place that stays lost in time. My kids love it there, despite the fact they are now all teenagers, they never stop asking when we are going back.
The post The Square Mile and Me: Fintech supremo Tim Levene on Moscow’s vodka scene, Coya City and a bold call for 2023 appeared first on CityAM.
