The global online gambling industry provides tremendous potential for investors.
There’s a steady stream of new and exciting businesses entering the market each year, many being founded by very bright minds and powered by innovative technologies and game-changing solutions.
The roll-out of regulatory frameworks has been a catalyst for rapid growth and the opening up of even more opportunities in recent years, and this shows no signs of slowing down as progress continues to be made in North America, Latin America, Africa, Europe and Asia.
The increase in opportunities has led to a rise in investors entering the industry as they look to back early-stage ventures with strong potential. They can be individual, high net worth people or venture capital firms like VentureMax and will have different areas of expertise – but for the majority, the investment criteria will be the same.
VentureMax Group is seeking investment opportunities across the industry, and these are the main factors we use to determine whether an opportunity is right for us or not.
Early-stage ventures with big growth potential
We need to get involved at the early stage of a business. This is because we want to support the business and its founders in achieving their full potential while maximising the potential return on the investment we make – both in terms of cash and resources put in.
We want to empower entrepreneurs and companies with exceptional ideas, products, experiences and solutions, and provide them with the financial support and strategic guidance they need to achieve transformative growth.
Of course, we need to be able to see the business has big growth potential from the outset but getting in early means we can improve the chance of success and secure the biggest return.
Businesses that disrupt
While this is an industry that offers lots of opportunities, there are lots of companies on the hunt for the next big thing. To stand out and succeed, a business needs to have the potential to disrupt the status quo and bring something new to the table.
This doesn’t mean reinventing the wheel – disruption can happen simply by doing what is already being done, just a whole lot better. But the bigger its disruptive force, the bigger the impact it will have and the bigger the success it will achieve.
So, if we are looking at investing in a slot studio, we are more interested in a provider that has come up with a proprietary bonus mechanic or a new game format than a developer that’s simply producing well-designed Egyptian and Gem-themed slots.
Businesses powered by innovative tech
Innovative, proprietary technology is often what causes this disruption and is ultimately what brings the greatest value to the business. This is a technology industry after all, and the most significant step-changes in recent years have all been driven by technological advancements and new capabilities.
Right now, artificial intelligence, machine learning and quantum computing are making the headlines and investors are absolutely looking to back businesses pushing boundaries in these areas. Compliance and responsible gambling tech are also pretty hot, especially with goliath markets like Brazil regulating.
The demand for reg-tech is only going to rise and the early-stage companies leveraging the power of AI and machine learning to develop solutions and services have the massive growth potential that investors are seeking.
Strong founding teams
Investors invest in people, and that’s why we always consider the founders of a business, particularly their track record and experience. They don’t need to have founded a business before, but we do expect them to have a high level of relevant experience and the ability to manage and motivate teams.
Welcoming an investor into the business is often the first time the founder has to relinquish complete control, so our goals and approaches must align so we can work together as a true partnership.
Scalable and defensible market opportunities:
The business has to be scalable but just as important is being able to defend the market-leading position it should be able to attain. As soon as a business hits on the next big thing, it’s not long before others follow so the goal must be able to not just get ahead but stay ahead.
This is not only in terms of product but also in terms of the markets in which the business finds success.
At VentureMax, we believe the only way to find the best businesses out there is to be proactive and search for them. Some investors sit back and wait to be approached, but this doesn’t work for us.
Investment is a partnership, and we want the businesses that chose to welcome us in to know that we identified them as having incredible potential very early on. We want them to know that we believe in them and are all in on making their venture a success.
This is a really exciting time for the industry and for investors.
There are some great companies out there who are just starting their journey and VentureMax is here to support those who have what it takes to really change the game within our industry.
