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What are some of the recent innovations that you believe are shaping markets and, more broadly, the global economy?
Technology and venture capital are becoming global phenomena, significantly impacting the world economy. While many governments are focusing inward and globalization seems to be slowing down, entrepreneurs and a select few smart investors are moving in the opposite direction. They are creating increasingly “borderless” global businesses.
Based on your experience with the emerging markets, how should investors account for the emerging markets in their investment strategies? What are the opportunities that investors should realize?
Many investors overlook the vast opportunities in emerging markets, especially those beyond China and India. Regions like Latin America and Southeast Asia are experiencing rapid economic growth, favorable demographics, and rising technological innovation. While much of this tech innovation is currently accessible mainly through private markets like venture capital, this is changing. For example, Mercado Libre, a company we initially supported at Endeavor over 20 years ago, was listed on Nasdaq in 2007 and is now part of the Nasdaq-100 Index, with a market value exceeding $100 billion.
Companies like Mercado Libre, Nubank, and DLocal are just the start of a wave of promising tech companies in Latin America. To capitalize on this trend, investors should consider two actions: First, pay attention to the growing venture capital industry in places like Brazil and Mexico. Recent research by Atlantico highlights that Latin American VC funds are often among the top global performers. Second, keep an eye on the upcoming IPOs of over a dozen tech companies from Latin America in the next few years. These include global companies like Wellhub and Hotmart, as well as regional leaders such as iFood, Ebanx, and Creditas in Brazil, and Kavak and Clip in Mexico.
How do you think the emerging markets will evolve in the next decade?
Currently, emerging markets account for 61% of the global population and 38% of the global GDP, but only 8% of global private capital investment. This is set to change.
Technological advancements will enable global businesses to emerge from unexpected places. The world’s largest digital bank is from Brazil, and the biggest EdTech company is from India. Emerging markets have produced several global tech brands recognized in the U.S., such as Auth0 from Argentina and UI Path from Romania. This trend is likely to continue with the rise of AI.
Our venture capital fund, Endeavor Catalyst, has made four recent AI-related investments in Morocco, Romania, Spain, and Vietnam. We are also significant international investors in new tech businesses across the Middle East, focusing on markets like Egypt, Saudi Arabia, and the UAE. I recently attended investor and tech gatherings in Riyadh, Abu Dhabi, and Dubai, and the atmosphere was inspiring, filled with hope and a forward-looking perspective. It’s exciting to be involved, and it feels like the future is bright for emerging markets!
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