Business

Insight is a Resource: Why Sean Brown Likes Investing in Experts

Published

6 years ago

April 27, 2020

Early-stage investing can be, for lack of a better word, tricky. As founder and CEO of investment firm GO VC and a serial business-starter himself, Sean Brown has been on both sides of the boardroom table during pitch meetings. And he’s built a 15-year investment career by seeing through the tricks and buzzy pitches. We connected with Sean Brown to find out what startup owners raising capital should know about the process from an investor’s perspective.

1. What are the main criteria for you to consider when investing in an early-stage company?

Investors need to balance a long-term vision of an idea or business’s potential with the short-term needs and risks that could prevent success. Sean Brown has found that two criteria have led to the most effective investments for GO VC. “First, my team and I need to be able to connect with the founders. If we don’t feel a certain level of synergy early on, it probably isn’t going to work later either,” Brown said. “And although every startup pitches some kind of solution, we prefer projects that create value by helping people, because those ideas tend to resonate more.”

2. What’s the biggest mistake you made and the most important lesson you learned since you started investing?

Obviously, no investor hits a home run on every startup. But sometimes ventures that don’t pan out are more valuable in the long run because of the lessons they teach. This, Brown says, was an important lesson in itself. “In some of my early investments, the companies I worked with bit off more than they could chew, and I didn’t recognize that early enough,” Brown said. “One of the keys for GO VC has been supporting and staying involved with our startup partners, because applied expertise is a critical resource just like capital.”

3. What types of startups do you prefer to invest in?

Sean Brown and GO VC’s early investments were in the tech startup space, funding marketing, software, and other online-based companies. But that was due in part to Brown’s own experience in those fields, and the firm’s scope expanded organically as new opportunities appeared in other markets. “We prefer small, agile companies, and founders that are devoted and passionate about their projects,” Brown said. “I wouldn’t describe GO VC as a tech investor, especially now — we’ve evolved, and we’re working with businesses in a lot of different verticals.”

4. In your view, what value can startup accelerators add, and why?

Accelerators and business incubators can provide capital and development support for startups that are struggling to grow on their own. But the greatest benefit of those organizations is usually more personal, Brown said. “Accelerators are valuable, and for more than just funding,” Brown said. “We have our own incubation program at GO VC, and the most effective results from that have come from connecting people and building relationships. Other accelerators would probably say the same.”

5. What should startups think about before contacting a VC? What kind of questions impress you?

Entrepreneurs and new business owners who decide to raise capital may initially find themselves in unfamiliar territory. Common knowledge suggests presenting a transparent financial picture and realistic projections for growth. Brown recommends these steps too, but also points out that proving your industry expertise is an underrated aspect of getting an investor’s attention. “It’s always more satisfying to talk to people who know what they’re talking about, right? And not just in pitch meetings,” Brown said. “If someone can explain why a product or idea will succeed and not just how it works, it’s much more impressive, and the potential for growth is exponentially higher.

Business

Inside the $4.3B Quarter: What’s Fueling Black Banx’s Record Revenues

Published

1 week ago

January 16, 2026

Matthew Wiles

Every quarter brings fresh headlines in fintech, but few make the kind of impact achieved by Black Banx in Q2 2025. The Toronto-based global digital banking group, founded by Michael Gastauer, reported an extraordinary USD 4.3 billion in revenue and a record USD 1.6 billion in pre-tax profit, while improving its cost-to-income ratio to 63%.

These results not only highlight the company’s operational efficiency but also mark a pivotal moment in its journey from challenger to global leader. The big question is: what’s fueling such impressive financial performance?

Customer Growth as the Core Driver

One of the clearest engines of revenue growth is Black Banx’s expanding customer base. By Q2 2025, the platform had reached 84 million clients worldwide, up from 69 million at the end of 2024. This 15 million net gain in six months demonstrates both the attractiveness of its services and the scalability of its model.

Unlike traditional banks, which rely heavily on branch expansion, Black Banx leverages digital-first onboarding that allows customers to open accounts within minutes using just a smartphone. This approach is especially effective in regions underserved by legacy institutions, where access to affordable financial tools is in high demand.

More customers don’t just mean higher transaction volumes—they generate a compounding effect where network size, brand trust, and service adoption reinforce one another.

Real-Time Payments and Cross-Border Solutions

A major contributor to Q2 revenues is the platform’s real-time payments infrastructure. Black Banx enables instant cross-border transfers across its 28 supported fiat currencies and multiple cryptocurrencies, helping both individuals and businesses bypass the traditional bottlenecks of international banking.

For freelancers, SMEs, and multinational clients, this means faster liquidity, reduced foreign exchange costs, and simplified global operations. The demand for real-time financial services is growing rapidly—Juniper Research projects global real-time payments turnover to hit USD 58 trillion by 2028—and Black Banx is strategically positioned to capture a significant share of this market.

Crypto Integration as a Revenue Stream

Another key revenue driver is crypto integration. While many traditional institutions remain hesitant, Black Banx embraced digital assets early and has built infrastructure to support Bitcoin, Ethereum, and the Lightning Network. In Q2 2025, 20% of all transactions on the platform were crypto-based, reflecting strong customer appetite for hybrid banking services that bridge fiat and digital assets.

Revenue comes not only from transaction fees but also from value-added services like crypto-to-fiat conversion, staking yields (4–12% APY), and blockchain-enabled payments. For customers in markets with unstable currencies, these services act as a financial lifeline, further expanding the platform’s relevance.

AI-Powered Efficiency and Risk Management

Record revenues would be less impressive if costs ballooned at the same rate. But Black Banx has proven adept at balancing growth with efficiency. Its cost-to-income ratio improved to 63% in Q2, down from 69% a year earlier, thanks to heavy reliance on AI-powered automation.

AI now drives fraud detection, compliance, and customer onboarding—areas where traditional banks often struggle with cost inefficiencies. By automating these processes, Black Banx can process millions of transactions securely while maintaining profitability at scale. This level of efficiency is rare in fintech, where high growth often comes at the expense of margins.

Regional Expansion and Untapped Markets

Geography also plays a role in fueling revenues. Much of the Q2 growth came from Africa, South Asia, and Latin America—regions where demand for mobile-first banking continues to soar. In 2024 alone, Black Banx reported a 32% increase in SME clients from the Middle East and Africa, signaling the strength of its positioning in underserved markets.

By extending services to populations previously excluded from formal banking—migrant workers, rural communities, and small businesses—Black Banx taps into vast pools of latent demand. The strategy proves that financial inclusion and profitability are not mutually exclusive but mutually reinforcing.

Diversified Revenue Streams

Another factor behind Q2’s record revenues is Black Banx’s diversified business model. Income is not tied to a single service but spread across multiple streams, including:

Transaction fees from cross-border transfers and payments.
Crypto trading and exchange services.
Premium account features for high-net-worth clients.
Corporate services for SMEs and international businesses.

This diversification insulates the company against volatility in any single segment, creating stable revenue growth even in shifting market conditions.

Michael Gastauer’s Strategic Blueprint

Behind these results is Michael Gastauer’s long-term strategy: scale aggressively but with efficiency, innovation, and inclusion at the core. His vision has always been to create a borderless financial ecosystem, and Q2 2025’s performance is evidence that this vision is not only achievable but sustainable.

By balancing mass-market accessibility with premium features, and by blending fiat with digital assets, Gastauer has positioned Black Banx as a category-defining player in global finance.

The Road Ahead: Toward 100 Million Clients

Looking forward, the company’s goal of reaching 100 million customers by the end of 2025 will likely be the next catalyst for revenue growth. More customers mean more transactions, more data insights, and more opportunities to refine and expand its service offering.

If current momentum holds, the USD 4.3 billion quarterly revenue milestone could be just the beginning of an even larger growth story. The challenge will be ensuring systems scale securely while maintaining trust in an environment where privacy and compliance are paramount.

A Record That Signals More to Come

Black Banx’s Q2 2025 performance—USD 4.3 billion in revenue, USD 1.6 billion in pre-tax profit, 84 million clients worldwide, and a lean 63% cost-to-income ratio—is more than a financial milestone. It is a signal of how the future of banking is being rewritten by platforms that are borderless, crypto-inclusive, and data-driven.

What fueled this record-breaking quarter is not one innovation but a combination of strategies—scalable onboarding, real-time payments, crypto integration, AI efficiency, and expansion into underserved regions. Together, they form a model that doesn’t just challenge traditional banking but actively builds the foundation for global dominance.

For Black Banx, the road ahead is clear: the $4.3 billion quarter is not an endpoint but a launchpad for even greater scale and profitability.