Oleksandr Briukhovetskyi: "We help startups achieve break-even faster"

At this year’s ICE Barcelona, we stopped by the RedCore booth to sit down with Oleksandr Briukhovetskyi, AI & Web3 Portfolio Manager, to learn more about how they approach investing.

Oleksandr shared what types of projects RedCore is interested in, how the M&A investmentmodel differs from traditional venture capital, and what advantages this approach offers to startups looking for a strategic partner rather than just funding.

RedCore has transcended from an iGaming fund to a multi-vertical fund, which is actively looking to expand into new areas, such as RegTech, traffic, analytics, MarTech, AI, Web3, and more.

RedCore has been actively looking for a mergers and acquisitions model as opposed to a venture capital model.

Briukhovetskyi argues that this model is flawed insofar as it restricts companies’ ability to focus on their products or services, and shifts the attention to vanity metrics or chasing the next funding round.

RedCore leverages its business group network and services to help start-ups and promising companies to scale through expertise and products. The business group also comes with legal and financial departments, which are able to provide further insight and reduce friction for businesses that simply want to focus on their products instead.

Briukhovetskyi believes that this creates a sustainable business model and, even more importantly, it means that the company RedCore has invested in is driving actual value in the market, and not adding to a bubble.

RedCore also focuses on a healthy unit economy, which means that a product can last longer. The idea is not to have a company depend on RedCore indefinitely in terms of financial stability, but rather chart a path towards the "break-even" point and remove dependency, which the business group sees as good for both the particular company and the group at large.

Once a business becomes "break-even," it can truly start thinking about scaling. RedCore is interested in long-term partnerships, and it is usually the types of companies that are interested in teaming up with RedCore as well.

The full conversation with Briukhovetskyi is well worth watching in its entirety on Casino Guru’s official YouTube channel. You will find this and many more in-depth dives in the industry with some of its most prominent decision makers.

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