500 Global, a global venture capital firm, released a new research entitled the 500 Global Rise Report, which highlights four narratives on the next decade of global technology including 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.
In the Rise Report, the firm 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.
In details, the four narratives are:
- Rise of the Next Internet Users: The report highlights 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 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 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. 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.
Commenting on the release of the report, Christine Tsai, CEO and Founding Partner of 500 Global, said:
“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. 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.”
Courtney Powell, COO and Managing Partner at 500 Global, added “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. 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.”
Finally, Khailee Ng, Managing Partner at 500 Global, said: “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. 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.”
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. 500 Global has backed over 5,000 founders representing more than 2,800 companies operating in 80+ countries. They 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).