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What recent innovations do you think are transforming markets and the global economy?
Technology and venture capital are becoming increasingly global, greatly influencing the world’s economy in the coming years. Despite a trend towards inward-looking policies from various governments and leaders, I believe that entrepreneurs and a select group of the world’s leading investors are forging ahead to create “borderless” global businesses.
Considering your experience with emerging markets, how should investors incorporate these markets into their strategies? What opportunities should they be aware of?
Many investors underestimate the vast potential in emerging markets, especially those beyond China and India. Countries in Latin America and Southeast Asia, for example, are marked by rapid economic growth, favorable demographics, and a surge in technological innovation. While much of this innovation has been confined to private markets, such as venture capital, that landscape is shifting. Take Latin America as a case in point. Mercado Libre, one of our original portfolio companies at Endeavor established over 20 years ago, went public on Nasdaq in 2007 and is now part of the Nasdaq-100 Index, boasting a market cap exceeding $100 billion.
Companies like Mercado Libre, Nubank, and DLocal represent just the beginning of a new wave of significant technology firms emerging in Latin America. To capitalize on this trend, investors should focus on two key actions: First, pay close attention to the burgeoning venture capital scene in countries like Brazil and Mexico, where research from Atlantico indicates that Latin American VC funds are frequently among the top quartile globally. Second, keep an eye on the pipeline of over a dozen Latin American tech companies planning IPOs in New York within the next two to three years. This includes globally recognized firms such as Wellhub and Hotmart, as well as regional champions like iFood, Ebanx, and Creditas from Brazil, Kavak and Clip from Mexico, and Rappi throughout the region.
How do you envision the evolution of emerging markets over the next decade?
Currently, emerging markets account for 61% of the global population and 38% of global GDP, yet they receive only 8% of global private capital investment. This is set to change.
Advancements in technology will pave the way for global businesses to emerge from unexpected places.
For instance, Brazil is home to the largest digital bank, and the world’s leading Edtech company is based in India. Emerging markets have produced notable global technology brands that many are familiar with, such as Argentina’s Auth0 and Romania’s UI Path; this trend is poised to continue, particularly with the rise of AI.
Our venture capital fund, Endeavor Catalyst, has recently made four new investments related to AI in varied locations, including Morocco, Romania, Spain, and Vietnam.
Moreover, we are among the largest international investors in new technology enterprises across the broader Middle East, focusing on regions like Egypt, Saudi Arabia, and the UAE. Recently, I attended gatherings of investors and tech innovators in Riyadh, Abu Dhabi, and Dubai, and the atmosphere was incredibly inspiring. Attendees exhibited hope, positivity, and a forward-thinking mindset, reinforcing the impression that the future undoubtedly belongs to emerging markets!
