500 Global’s Post

Transcript

The Internet is a wild place. It completely dominates modern life and we use it so much it almost feels like it's always been there. But did you know in the past ten years, almost 2 1/2 billion people came online for the very first time? And for those billions of people, their lives change forever. They joined the existing two and out billion Internet users, making a total of 5 billion projected Internet users by the end of 2023. They gain access to information, resources, entertainment and each other. Together, we form connections, we've collaborated and we've created a whole new generation of tech companies. These tech companies combined represent over $30 trillion in market value. So what's going to happen in the next 10 years? What happens when the Knicks billion Internet users come online? Where will these users be? What happens when the hardware all of us are using? The connectivity that connects us and the software, the power? How smart it is? What happens when all of this starts to accelerate and keeps accelerating? How will all of this new value be created? And finally, and most importantly, how can you be a part of it? Now the answers may surprise you. At 500 Global, we spent over a decade investing in over 2800 startups across 80 countries. We've searched high and low to find motivated entrepreneurs who have world changing ideas. We've invested in many of them who have gone on to become multibillion dollar businesses. We've taken what we've learned from investing and pored through hundreds of databases and reports to combine into what we are now calling the 500 Global Rise Report. In this short film, we'll share with you our key findings and why they matter. We'll share who we think the Knicks billion Internet users will be, which countries we think will rise next, and what sectors may be the next to grow. So why share the RISE report now? Why share this with the world? Our objectives are manifold first. We hope to spark a global dialogue. Around a broader set of opportunities that are coming in the next decade. Next, we wanna give you a resource to help you explore and define the role that you want to play. And finally, we want to invite all individuals, whether policymakers, operators, academics, investors, entrepreneurs, all of us to come together to collaborate and Co create this future that we want to see. By the end of the film, we hope that you'll see that this RISE report can be a resource that you will. News to navigate potential opportunities in the next decade, as well as resources you can use to help shape it. But before we get too far into the future, let's first take a step back, because this story begins in Silicon Valley. In 1985, my family and I moved to Silicon Valley, and that's where my mom started her career as a software engineer. For decades, talented people from around the world flocked to Silicon Valley to do the same. Growing up in Silicon Valley, I was surrounded by innovation and technology and loved tinkering with and building things. livingthroughthe.com boom and bust. I then joined what was a small Internet company. At the time that company was Google. There I had the great opportunity and privilege to work on category defining products and technologies during a time when not only Google grew exponentially, but so did Silicon Valley and Internet and mobile technology. Now, with the story of Silicon Valley may seem to only be about Silicon Valley, there's a lot more to it. If you look at Google, more than half of their revenue comes from outside of the US And this is the same for Apple and NVIDIA, two of the largest tech giants in the world. Immigrants have started more than half of US unicorns and are also leading 80% of them this international. Perspective underscores that the opportunities are everywhere, all around the world. In 2010, I left Google to create 500 Global, a different kind of venture capital firm, because of how technology was changing. We believe that the next big tech companies would be both from Silicon Valley as well as outside of the US, and that there would be an increase in promising startups from all corners of the world. And we wanted to back these founders. During that time, the speed of Internet users coming online accelerated dramatically. While it took 20 years for the 1st 2 1/2 billion to come online, it's projected to take only 10 years for the next 2 1/2 billion to do the same. Now, with 5 billion Internet users projected to be online by the end of 2023, there remains another 3 billion who are expected to come online by 2040. And on top of that. Hardware is getting more accessible, Internet connectivity is getting faster and cheaper, and software is getting smarter. While we know this effects every country, we ask which countries are rising the fastest? Which Internet economies are booming? Which should we be paying attention to? Some believe the next decade will be defined by the US and China. And while this may be largely true at 500 Global, we believe the next decade will also be defined by what? He called the rise economies. The rise economies are the 30 largest, fastest growing economies outside of the US and China. To identify these, we took the largest economies by projected GDP and split them into two groups. The first group whose economies are growing less than 1.75% a year, we call mature economies. The second group, whose economies are growing faster than 1. 75% a year, we call the rise economies. Based on our research, in the next five years these 30 rise economies will reach a combined GDP of over $30 trillion. That's larger than each of the US and China. So what sets these 30 rise economies apart compared to mature economies? Well, the rise economies are growing faster, they're younger, they are connected and they're under penetrated across massive sectors including ecommerce and fintech. Most importantly, the rise economies are largely untapped venture markets. Yet many of the rise economies are already producing world class multibillion dollar companies and we believe they will continue to grow with each and every new user coming online. At 500 Global, we've been studying the sequence of innovation. We've looked at these global economies very closely. We want to answer 2 questions. Which sectors reach meaningful skill 1st and what other sectors may rise next? Let's do a quick world tour and take a sneak peek into some of our findings. The first stop India. It is e-commerce that reach meaningful scale 1st. And it is e-commerce that continues to be the largest sector by sheriff billion dollar companies in India. In Indonesia, we see the same trajectory of India now for 28 more countries and the sequence of innovation. All this will be covered in the RISE report. Now inside of the RISE report, we have identified and broken down RISE economies into individual venture tearsheets. In there you're going to find macroeconomic stats like GDP, population, governance, indices. You see technology adoption stats such as ecommerce penetration and 4G penetration. You'll find venture funding. Sets including venture dollars as a percentage of GDP, as well as a list of most active investors in those markets. All of this overlaid on top of the sequence of billion dollar companies in each of those markets. When you put all this together, you can pattern match and create your own rubric for what's to come. We have made all of this available for you to download. Now, as you look into the details, you'll start to see which sectors are emerging in these regions, which are the gaps in innovation, and what kind of sectors may rise to scale next. Getting ahead of the next decade requires a real savviness, almost an obsession for global markets. Because you want to see where the roll this headed. You want to bring this conversation beyond US and China. You'll want to see how some of these large tech companies are winning market by market and scaling globally. And finally. You want to see how this global savviness will continue to be a huge driver of the future. So how do we determine winners and losers? Who decides who will come out on top? It's the people. People like you and me. It's the policymakers. It's the operators in companies, it's the investors. It's entrepreneurs. It's up to all of us to lead and shape what's to come. At 500 Global, we're investing in a world's potential. Our mission is to uplift people and economies around the world through investing in entrepreneurship. We're excited to share our learnings with you. So that more people will take part in the future and we can build together. This opportunity is yours. I'm Kylie Ugh. I'm Courtney Powell. And I'm Christine Tsai. And on behalf of 500 Global, all of the changemakers, innovators, dreamers, and entrepreneurs, this is your invitation to Co write the future with us.