The Next Big Tech Companies: Emerging Markets Take Center Stage
The next big tech companies are no longer solely emerging from the United States or China. They are also rising from Africa, Latin America, Eastern Europe, and Southeast Asia. To identify these future unicorns before anyone else, some investors have made these emerging markets their preferred hunting ground. This is evident in a ranking of investors who have funded the most future unicorns in "Elsewhere" markets, i.e., outside of major tech hubs like the US, China, and the UK.
Top Investors in Emerging Markets
The ranking is led by Endeavor Catalyst, which has invested in 37 companies before they became unicorns, i.e., before they reached a valuation of $1 billion. This top spot demonstrates its ability to detect the most promising startups early on and support their development. The gap with other investors is significant, with:
- Accel coming in second with 24 investments
- SoftBank in third with 22 investments
- Index Ventures in fourth with 21 investments
- Tiger Global in fifth with 18 investments Other notable venture capital firms, such as General Atlantic, Sequoia, and Bessemer Venture Partners, also feature in the top 10.
A Strategic Approach to Investing
This ranking does not simply reward investors who are present in the capital of large companies. Rather, it highlights those who took the risk of investing in startups before they were worth $1 billion. In other words, they bet on their potential while they were still growing. This strategy requires a good understanding of local markets and a long-term vision. Startups in emerging markets may not always attract as much attention as those in major tech hubs, but they also offer significant opportunities for investors who can identify future leaders.
The Rise of New Tech Champions
New tech champions can now emerge from many countries. By funding them from their early growth stages, investors like Endeavor Catalyst contribute to the development of companies that can grow globally while remaining rooted in their original market.
Source: Pitchbook, CB Insights
