Fintech supremo Tim Levene on Moscow’s vodka scene, Coya City and a bold call for 2023

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 AM 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 after Gorbachev. I did my A-levels at the City of London School, one of which was in Russian, which was somewhat unusual in 1990. British banks were keen to build their knowledge of Eastern Europe and they were looking for someone with a strong interest for Eastern Europe and was willing to do research in a dingy back room for a couple of months, and at the time it’s fair to say the competition for places wasn’t particularly strong.

What was your first job in financial services?

I have never had a job in traditional financial services, other than the summer job. My first full-time position at university was with Bain and Company, first in Moscow and then in Sydney. As much as it was a great learning experience, I quickly realized 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 ex-Bain colleagues) I realized that building businesses with talented people was going to be my future career direction. Being an entrepreneur is full of ups and downs, but you can’t beat the highs when things are going right. I have always been a fiercely independent person and to this day feel a huge personal responsibility to do everything I can to help a business succeed. Things don’t always go according to plan, but there’s no better job than working with dynamic entrepreneurs who want to drive truly disruptive change in Financial Services.

Who is the City of London figure you admire most?

I have been fortunate 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 eternally grateful to Jacob Rothschild who, despite declining to invest in Flutter.com in 2000 when I butchered the pitch, kept an eye on what we were building. I met him many years later, and when I suggested to him that technology was finally going to disrupt financial services after the 2008 financial crisis, he challenged me to do something about it, and eventually with his encouragement, RIT Capital supported me to launch my first VC fund in 2010.

What is one thing you like about the City of London…

The City of London is an incredible square kilometer 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 learned 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 the city’s businesses. They need strong foot traffic to sustain their business, which is why the Destination City initiative run by the City of London Corporation is vital to bringing more people into the city seven days a week.

What has been your proudest achievement?

Besides my family, I am immensely proud to have launched the only listed fintech venture fund in the UK and one of the only globally. It hasn’t been an easy journey, but we’ve had some great successes to date and I’m excited about many of the fintechs we have in our portfolio. I am sure that our patient investors will be rewarded in the next couple of years.

What is your most memorable moment?

When I lived in Moscow in 1993, I worked for Bain who at the time advised the Russian government on small business privatization strategy. There were a handful of fairly conservative but experienced American consultants who had been flown into Russia to lead the team. As a country emerging from communism, there had been little or no exposure to how “business” was done in the United States. Putting the Russians and Americans together in a meeting room was a cultural challenge, so the only way to get through was to meet over lunch or dinner. This usually involved a lot of bad food and a lot of good vodka. As the young Englishman on the team, the American team decided that I would be the designated drinker and spare their blushes by leading the toasts in Russian. It’s fair to say I learned to drink vodka like a Russian, but struggled to add any value to the office after lunch.

We’re going to have lunch and you pick – where are we going?

I rarely go out for lunch so unfortunately I can recite the entire itsu or Pret menu on request. But if I’m prioritizing correctly, I’ll take you to Coya City if you fancy Peruvian or over the road to Entrecote for a decent steak and a bottle of red.

And do you have a favorite watering hole after work?

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^th century, decent selection of craft beers and gin (my picks) but get there early if you want a seat!

Are you optimistic for the rest of 2023?

I’m a venture capital investor, I’m always an inherently glass-half-full optimist. I think the second half of 2023 can’t be worse than the first half, but it’s fair to say that we have yet to see the full impact of the fallout from the post-covid asset bubble and the consumer impact as a result of inflation/high interest rates. Still, the harder it gets to pick winners, the more excited I get as an investor, as the next 5 years will be a truer test to identify real outliers rather than buying into hype.

Give us a bold prediction for the fintech sector this year?

You will see several large established financial institutions acquire or attempt to acquire some “best in class fintechs.” Their balance sheets have swelled and their digital transformation strategies have become fraught with challenges. As valuations moderate, it becomes imperative for incumbents to look past their own attempts to disrupt from within.

Where is 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’ve never lived anywhere in London that doesn’t have a NW at the start of the postcode.

And where do we find you on a Saturday afternoon?

My great grandfather opened a shop on Fulham Road in the 1880’s so as a family we have been pestering 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 but Stamford Bridge: they have been truly atrocious, arguably the worst in history in terms of their individual talent. I’ve seen some bad teams since my first season in 1978, so that’s saying something!

You have a well-deserved two weeks off – where are you going?

Sea Island, Georgia, USA. I have been going there since I was a child and it is a truly special place that remains lost in time. My kids love it there, even though they are now all teenagers they never stop asking when we are going back.