Research provides a resource to help policymakers, venture community, asset allocators and business leaders understand the potential trajectory of global technology innovation
SAN FRANCISCO & WASHINGTON, D.C.–(BUSINESS WIRE)–500 Global, one of the world’s most active venture capital firms1, announced new research entitled the 500 Global Rise Report, which highlights four narratives on the next decade of global technology: the Rise of the Next Internet Users, the Rise of the Next Global Companies, the Rise of the Next Economies and the Rise of the Next Sectors. The research organizes and analyzes various datasets designed to quantify economic growth, technology sector maturity, technology adoption, and venture capital penetration.
“For over a decade, 500 Global has exchanged research, insights and perspectives with changemakers — including entrepreneurs, investors, operators, academics and policymakers — to continue to hone our investment insights, as well as to further the conversation around uplifting people and economies around the world through entrepreneurship,” said Christine Tsai, CEO and Founding Partner of 500 Global. “That’s why we are excited to share the 500 Global Rise Report: a collection of data, insights and perspectives to invite more stakeholders into the conversation.”
In the Rise Report, 500 Global has collected, organized and analyzed a wide range of third-party datasets to examine potential venture funding gaps of select Rise Economies relative to other mature venture ecosystems as well as the sequences of innovation across billion-dollar sectors in economies worldwide to surface patterns of innovation and potential opportunity in the tech landscape. The report sheds light on four narratives on the next decade of global technology:
Rise of the Next Internet Users: The report examines potential opportunities presented by the 3 billion new internet users expected to come online by 2040. It explores how the expansion of what 500 Global calls the “Global Tech Stack,” may drive trillions of dollars in value creation.
Rise of the Next Global Companies: The Rise Report quantifies how technology companies across stages are becoming more global. The report highlights how startup activity is becoming more global with over 100 countries boasting active startup ecosystems. The same is true for unicorns, with more than 50 countries that have minted at least one unicorn. The report also quantifies how global revenues become increasingly important as tech companies scale, and how many of today’s tech giants are operating with a global lens.
Rise of the Next Economies: The report features a deep dive into the larger opportunity set beyond the US and China. It presents the Rise 30 Economies which, combined, are expected to surpass each of the U.S. and China in GDP by 2027. Relative to mature markets, the Rise 30 Economies are growing faster, younger, more social, connected and underpenetrated across sectors including E-commerce and Fintech, as noted in the Rise Report. Notably, the Rise 30 are largely nascent venture capital markets and the report delves into their respective Venture Funding Gaps, a measure of venture penetration relative to that of the US.
Rise of the Next Sectors: The Rise Report examines the sequence of innovation at scale by studying +$1B sectors and the patterns in which they arise across the Rise 30 Economies. Based on the research findings, patterns of innovation differ across economies and importantly, these patterns may help inform local opportunities.
“Our overarching thesis is that by identifying what we believe is the relative delta between where an underpenetrated venture ecosystem is versus their potential, we may find alpha on a global scale,” said Courtney Powell, COO and Managing Partner at 500 Global. “When we’re able to quantify the potential gaps in a venture ecosystem, we believe we are better equipped to collaborate with all stakeholders to accelerate global venture ecosystems and enable startups to drive economic growth in their economies and financial returns to our investors.”
“As discussed in the Rise Report, the first 5 billion internet users created an estimated $30 trillion of market cap across, what we refer to as the Global Tech Stack. We believe trillions of dollars more in value creation will follow the rise of the next 3 billion new internet users. This is why we actively research where these opportunities may arise from,” said Khailee Ng, Managing Partner at 500 Global. “We hope the insights and perspectives from this research will spur important discussions among stakeholders — governments, asset allocators, investors, and innovators — to mobilize a broader innovation and development story, and an inclusive one. We want the Rise Report to help more people to win across global economies, and to create lasting change for a better world.”
To access the full report, click here.
For more information about the report methodology, please see the following additional resource: Methodology: The Story Behind the Data: The Methodology of the 500 Global Rise Report
More global editorial insights on Rise Economies, Sectors, as well as regional perspectives on Emerging Europe, Latin America, Middle East-North Africa and Southeast Asia will be posted here.
About 500 Global
500 Global is a multi-stage venture capital firm with US$2.4 billion in assets under management as of 30 June 2023 that invests in founders building fast-growing technology companies. We focus on markets where technology, innovation, and capital can unlock long-term value and drive economic growth. We work closely with key stakeholders and advise governments on how best to support entrepreneurial ecosystems so startups can thrive. 500 Global has backed over 5,000 founders representing more than 2,800 companies operating in 80+ countries. We have invested in 35+ companies valued at over US$1 billion and 160+ companies valued at over US$100 million (including private, public, and exited companies). Our team members are located in over 20 countries and bring experience as entrepreneurs, investors, and operators from some of the world’s leading technology companies.
THIS PRESS RELEASE IS INTENDED SOLELY TO PROVIDE INFORMATION REGARDING 500 GLOBAL. ALL CONTENT PROVIDED IN THIS PRESS RELEASE IS PROVIDED FOR GENERAL INFORMATIONAL OR EDUCATIONAL PURPOSES ONLY. 500 GLOBAL MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR INFORMATION CONTAINED IN THIS PRESS RELEASE AND WHILE 500 GLOBAL HAS TAKEN REASONABLE STEPS TO ENSURE THAT THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS ACCURATE AND UP-TO-DATE, NO LIABILITY CAN BE ACCEPTED FOR ANY ERROR OR OMISSIONS. FIGURES ARE AGGREGATED ACROSS ALL FUNDS ADVISED BY 500 GLOBAL (EXCLUDING SUB-ADVISORY SERVICES). ALL FIGURES ARE BASED ON INTERNAL ESTIMATES AS OF 30 JUNE 2023 (UNLESS OTHERWISE NOTED) AND HAVE NOT BEEN INDEPENDENTLY VERIFIED. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS.
UNDER NO CIRCUMSTANCES SHOULD ANY INFORMATION OR CONTENT IN THIS PRESS RELEASE, BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES ADVISED BY 500 GLOBAL OR ANY OF ITS AFFILIATES OR REPRESENTATIVES. FURTHER, NO CONTENT OR INFORMATION CONTAINED IN THIS PRESS RELEASE IS OR IS INTENDED AS AN OFFER TO PROVIDE ANY INVESTMENT ADVISORY SERVICE OR FINANCIAL ADVICE BY 500 GLOBAL. UNDER NO CIRCUMSTANCES SHOULD ANYTHING HEREIN BE CONSTRUED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL INVESTMENT FUND.
PLEASE REFER TO THE FULL RISE REPORT (“PRESENTATION”) FOR FURTHER CONTEXT, NOTES, METHODOLOGY, AND SOURCES. PLEASE REFERENCE THE COMPLETE “DISCLAIMER” ON P2 OF THE PRESENTATION AND “SOURCE CITATIONS” SLIDE AT THE END OF THE PRESENTATION FOR SOURCE INFORMATION.
1Based on PitchBook’s 2022 Global League Tables: https://pitchbook.com/news/articles/global-league-tables-2022-annual
Communications at 500 Global