R136 Ventures is a unique investment company dedicated to mid- and late-stage startups in the U.S., Israel, and Dubai. Pulse 2.0 interviewed R136 Ventures Founder and Managing Partner Victor Orlovski to learn more about the firm.
Victor Orlovski’s Background
What is Victor Orlovski’s background? Orlovski said:
“I’m a software engineer who evolved to managerial positions in fintech. My experience includes pioneering work on a mobile banking stack in 2003, before the advent of the iPhone, for two of the largest banks in the CEE region. By 2014, these projects achieved the largest digital footprint globally, with over 45 million daily active users—surpassing the combined user bases of Chase, Bank of America, and Citibank. In 2013, I also spearheaded the development of the world’s first financial super app.Since 2015, I have built and led R136 Ventures, a venture capital firm focused on innovative technology investments.”
Evolution Of R136’s Thesis
How has your firm’s thesis evolved over time? Orlovski noted:
“We began as a small firm investing in B2B enterprise and fintech software in the U.S. and Israel. While our investment volume has grown significantly, our core focus remains unchanged. As seasoned tech operators, our DNA is embedded in aiding our portfolio companies with B2B strategies and assembling top-tier tech teams. Moreover, we have expanded our expertise to build business connections and establish a presence in the MENA region. Over time, what has truly evolved is the maturity and reach of our brand and professional network within the VC and tech communities.”
Favorite Memory
What has been your favorite memory working for your firm so far? Orlovski reflected:
“We maintain enduring friendships with our portfolio companies’ CEOs, founders, and managers. These relationships have continued long after some exits, even those that occurred over a decade ago. We are steadfast supporters of these exceptional teams, regardless of their success in the often high-risk venture business landscape. Entrepreneurs consistently commend our dedication to their needs and our ability to provide meaningful support. I take great pride in being a crucial part of their journey.”
Significant Milestones
What have been some of your firm’s most significant milestones? Orlovski cited:
“We are actively raising our fourth fund and navigating significant challenges within the VC industry. Our firm has a proven track record of investing in standout companies. Notable investments include eToro, one of Israel’s largest and most successful fintech companies, as well as DeciAI and Granulate, both of which achieved successful exits with sales to Nvidia and Intel, respectively. Our portfolio also includes innovative companies like Roofstock and Rescale, among others.”
Investment Success Stories
Would you like to share any specific investment success stories? Orlovski highlighted:
“One of our most notable investment successes is with eToro. We first invested in eToro in 2015 and have continued to support this thriving company as it expands. Today, eToro serves over 33 million consumers across 70 countries, providing exceptional opportunities for individuals to invest freely in various financial products. By democratizing the investment market and offering educational resources, eToro empowers millions to engage with financial investments in innovative and accessible ways.”
AUM And Other Metrics
Can you discuss total AUM or any other notable metrics? Orlovski revealed:
“We are managing around $450 million as a series of funds. Our current portfolio is around 20 companies.”
Industry Focus
What are some of the industries that your firm is focused on? Orlovski noted:
“Our firm primarily concentrates on B2B enterprise software and fintech. We have chosen to specialize in these sectors due to our team’s extensive experience in these fields.”
Differentiation From Other Firms
What differentiates your firm from others? Orlovski emphasized:
“Our firm stands out because our seasoned team of operators brings a comprehensive blend of expertise in technology, business development, and go-to-market strategies. This unique combination allows us to manage tech teams effectively and implement best practices that drive success in the marketplace.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Orlovski acknowledged:
“Some of the most significant challenges we faced occurred during 2022 and 2023, which were particularly tough years for our portfolio companies. We gained valuable insights and developed robust strategies to support our companies during this period. By guiding them through these turbulent times, we helped them survive and emerge stronger and more resilient than ever.”
Future Goals
What are some of your firm’s future goals? Orlovski pointed out:
“Our firm’s future goals include expanding our network in the B2B and fintech sectors, with a continued focus on the U.S. and Israeli markets. We also plan to grow our team and enhance our presence in the Middle East.”
Assessing Potential Of A Startup
How do you assess the potential of a startup or founder before deciding to invest? Orlovski explained:
“We assess the potential of a startup or founder using a comprehensive due diligence checklist, which is a key component of our expertise. Our firm employs ten investment professionals who conduct a deep dive into the product and technology of each startup—more thoroughly than many other venture capital firms. We evaluate market trends, opportunities, and risks associated with their go-to-market strategies and assess their ability to attract talent. Recently, we partnered with the Stanford startup AIX2.AI to integrate AI intelligence into our due diligence process. This collaboration enhances our capability to pioneer AI-related functions within the due diligence landscape.”
Weighing Different Investment Opportunities
Can you share insights into your decision-making process when weighing different investment opportunities? Orlovski replied:
“Our decision-making process for evaluating investment opportunities prioritizes the people behind the businesses as much as the financial metrics. Recognizing the crucial role that leadership and team dynamics play, we assign significant weight to these aspects in our scoring model. Our investment decisions involve all four partners, each with extensive experience in venture capital. This collaborative approach allows us to conduct thorough, 360-degree evaluations of each opportunity. Additionally, we foster a collaborative and non-competitive culture within our team, ensuring that all parties are equally engaged in every decision, free from any internal conflicts of interest.”
Role Of Technology In Investment Strategy
What role does technology, especially emerging technologies like AI, play in your investment strategy? Orlovski commented:
“Emerging technologies, particularly AI, play a pivotal role in our investment strategy. We actively use a variety of AI tools to enhance our decision-making processes. A recent example is our partnership with AIX2.AI, through which we have adopted best practices for utilizing modern AI technology. For more insights into this collaboration, I invite you to listen to my upcoming podcast featuring the founders of AIX2.AI.”
Strategies For Supporting Portfolio Companies
Could you discuss any strategies you use to support and grow the companies in your portfolio? Orlovski described:
“We support our portfolio companies by helping them develop and implement expansion strategies into overseas markets, particularly by connecting them with large corporate customers and investment firms in the Middle East.”
Fostering Innovation
How does R136 Ventures foster innovation within the firm and its investments? Orlovski affirmed:
“R136 Ventures fosters innovation by promoting creative thinking and ongoing experimentation with AI technologies. We continuously refine our due diligence processes, learning and adapting from every investment opportunity to better support our portfolio companies.”
Opinion About The Global Economic Climate
What are your thoughts on the current global economic climate and its impact on venture capital? Orlovski assessed:
“With significant reductions in valuations, many companies find it increasingly difficult to raise funds or achieve profitability. We’re also witnessing a pivotal shift from globalization to a more fragmented world marked by isolation and antitrust measures. These trends pose substantial obstacles for startups aiming to establish global operations. However, our experience and expertise in navigating such complex environments are proving invaluable as we continue to identify and seize global opportunities for our partners.”
Future Of Venture Capital
How do you envision the future of venture capital over the next decade, particularly with advancements in technology and changes in global markets? Orlovski answered:
“Technology is poised to transform venture capital over the next decade. As innovation accelerates at an unprecedented rate, much of this growth will be driven by startups, with venture capital playing a crucial role in their development. Many of today’s largest U.S. companies did not exist 50 years ago, and I predict that by 2050, five of the top ten U.S. firms will be companies that have not yet been founded. These companies are likely to alter the way we live significantly. At R136 Ventures, we are eager to support these transformative companies, contributing to a better and more innovative world.”
Additional Thoughts
Any other topics you would like to discuss? Orlovski concluded:
“We see many opportunities in the B2B enterprise software sector, focusing on productivity, data management and orchestration, end-to-end business process automation, and AI adoption. Additionally, we see potential in the fintech space, especially in areas like payments and fintech infrastructure, including compliance technology.”
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