InMobi is the largest independent mobile ad network with global reach in markets including the UK, Europe, US, South Africa and India. Through intelligent mobile advertising solutions, the advanced technology enables advertisers to discover their target audience on mobile internet sites and mobile applications with advanced measuring capabilities. [Read more…]
Druva is a cloud-based data protection provider. Founded in 2008 in Pune, they are currently headquartered, Sunnyvale, California, with additional offices in India, the United Kingdom, Germany, Singapore, Japan, and Australia. Druva uses optimized WAN backups so that data from a remote location can easily be backed up, even in lower bandwidth. Everything is displayed in a single dashboard for backup, availability, and governance without having to switch to multiple systems and for the best protection against risk of data loss. [Read more…]
ChargeBee, founded in 2011, is a Chennai-based Saas startup that helps companies manage their subscription billings for small and emerging eCommerce businesses. With a host of features such as flexibility to change pricing, offering discounts and run promotions without the need to hire a developer makes this a great for startups looking for automation in subscription billing. In terms of pricing, ChargeBee offers two payment plans for businesses to either pay a fixed monthly subscription or a charge per transaction. [Read more…]
This report will focus specifically on India of the APAC region. The country have gained an impressive, significant traction on its’ own, with crazy high VC valuations and a huge stream of startups that appeared in the past few years.
2015 proved to be an extremely successful year for India. By the end of December 2015, total funding came to approximately $7.7 billion across 760 funding rounds, almost doubling from 2014’s record of $4.7 billion across 383 rounds. It has been previously observed that the mega rounding funds in 2014 proved that India has a thriving startup scene. Leading eCommerce marketplaces of Flipkart and Snapdeal following the entry of Amazon.in, and late stage investments in Flipkart, Snapdeal, and taxi app Ola accounted for half of $4.7 billion.
The Indian government is also figuring out new ways to propagate more startups, and they have large interest in vastly improving the tech sector. Prime Minister Modi recently announced the Startup India Movement in January, a series of incentives which will help startups including a $1.5 billion fund and tax incentives for both the startups and their investors. In hopes to accelerate the still sluggish economy, they see the value tech startups bring to India so these efforts aim to add over a million to the workforce.
It’s wise for startups to take advantage of a country with a huge population of 1.2 billion. Even though internet penetration is at 19.19% of a total estimated 243 million users. Compared with other developed and developing countries that have up to 90% penetration, the number is expected to rapidly grow once mobile infrastructures appear in more rural areas. This is primarily why the Indian government is actively pushing for the Digital India, an initiative aiming to improve the country’s infrastructure and internet connectivity. This is also garnering large attention from large U.S. companies like Microsoft, Google, and Facebook have corporate interest to increase internet usage in Indian rural areas and competitively offer their services. The growth will definitely sustain due to the large percentage of the population subscribed to broadband Internet, burgeoning 3G internet users, and a recent introduction of 4G across the country.
In addition, IDC expects India to be the world’s second-largest smartphone market after the U.S. by 2017. The smartphone market in India is definitely explosive, as smartphone companies all offer affordable smartphones at $100 – $150 entry point prices, and some have opened their own manufacturing factories in India. The smartphone medium will prove to be the greatest catalyst for India. Given its’ current low internet penetration, the proliferation of cheap smartphones will increase in smartphone penetration, and increasing demand for Internet-based services such as chat, social media, video and music will accelerate growth in mobile Internet usage.
Delhi, Gurgaon, Mumbai, Bengaluru, Chennai are the cities that contain India’s startup ecosystems. With government intervention pushing for more internet connectivity, this will be a major push for more Indians to enter the tech industry. India’s startup scene is starting to take off and more and more companies are getting closer to achieve unicorn statuses. Startups are starting all over cities with different cultures, with challenges companies still face such as poor infrastructure, obtaining talent, obtaining property, and access to funding.
|City||Founded||# of Employees||VC Raised (M)||Market|
|Grofers||Gurgaon||2013||1k – 5k||$165.50||Grocery|
|Quikr||Mumbai||2008||1k – 5k||$346.00||Classified|
|Practo||Bengalore||2008||1k – 5k||$124.00||Saas, Healthcare|
|Pepperfry||Mumbai||2011||501 – 1k||$128.00||eCommerce|
|PolicyBazaar||Gurgaon||2008||501 – 1k||$69.60||FinTech|
|Hike||New Delhi||2012||$86.00||Mobile, Messaging|
|Manthan Systems||Bangalore||2003||501 – 1k||$56.70||Big Data Analytics|
|InMobi||Bangalore||2007||501 – 1k||$220.60||Mobile, Advertising|
|Antuit||Bangalore||2013||$59.90||Big Data, Analytics|
|Peppertap||Gurgaon||2014||1k – 5k||$51.20||eCommerce|
|iYogi||Gurgaon||2007||1k -5k||$85.60||Tech Support|
|ChargeBee||Chennai||2011||51 – 100||$6.20||Saas, Subscription|
|Delhivery||Gurgaon||2011||5k – 10k||$127.50||Logistics|
|BigBasket||Bangalore||2011||1k – 5k||$85.80||eCommerce|
PromisePay, a fintech startup founded in 2013, is an online escrow payment platform for marketplaces. They allow marketplaces to abandon an in-house payment solution, essentially outsourcing the entire process and allows PromisePay to manage the entire transaction. Marketplaces can easily integrate features such as dispute resolution, escrow, and advanced fraud detection.
Their most notable and innovative feature is how they deal with buyer and seller disputes with their advanced preventative fraud monitoring to protect both parties. PromisePay utilizes various data sources such as an authentication system, verified bank accounts, background checks, IP address location, and white/black lists to verify a buyer’s device for abnormalities and uses geolocation to determine their physical location and likelihood of fraudulent activity.
- Company: PromisePay
- Started: 2013
- HQ: Melbourne
- Linkedin Employee Count: 17
- Co-founders: Simon Jones (CEO), Simon Lee (CTO), Darren McMurtrie (CEO)
- Product: FinTech, Online Payment Service
- Risk & Fraud Protection
- PCI Compliant
- Custom Fees
- Payments Dashboard
- Streamlined payments integration
- Accepts multiple payment forms (Major credit cards, bank transfers and PayPal)
- Disputes resolution
Switch Automation, founded in 2012, is an Internet of Things for Buildings (BIoT) provider of automation and smart building solutions for commercial buildings, property portfolios, apartments and homes. They initially started as an energy monitoring device for apartments in Australia but eventually decided to scale to the cloud to involve commercial green properties.
Switch Automation features a cloud-based, on-demand Intelligent Building Platform featuring data aggregation to portfolio analytics, fault detection to environmental monitoring, logic alerts and controls. Their end-to-end software assists property owners with finding the most efficient building operations to minimise utility and maintenance costs, lower total cost of ownership and report on their operational performance, greenhouse gas emissions and green building ratings. Switch Automation’s technology integrates a wide range of sensors, field controllers and edge devices, such as smart meters, building management systems and renewable power sources, and provides local environmental information from weather stations and RSS feeds as operational and analytics data.
- Company: Switch Automation
- Started: 2012
- HQ: Sydney
- Linkedin Employee Count: 24
- Co-founders: John Darlington (CTO), Deb Noller (CEO)
- Product: IOT, Saas
- Real time energy and operational data analytics
- 3rd Party Data Import from weather feeds and organizational data for accounting, transportation, waste, water and paper consumption
- Portfolio Operations
- Connected Access on any IoT device
- Energy Efficiency Reporting
- Occupant engagement
Stockspot, founded in 2013, is Australia’s first online, automated investment adviser and fund manager (robo-advisor). Stockspot aims to simplify the wealth management system to vastly increase accessibility for more Australians. Starting an investment portfolio costs as little as USD $2000, a large fraction of what most Australian fund managers and financial advisers offer, and services are free for up to $10,000. Using algorithms, StockSpot assesses a customer’s financial situation, investment goals, and risk tolerance, then automates investment recommendations. It has created low to high risk portfolios that spread investments over a combination of assets such as stocks, fixed-income, and gold.
- Company: Stockspot
- Started: 2013
- HQ: Sydney
- Linkedin Employee Count: 6
- Co-founders: Chris Brycki
- Product: FinTech, Finance Services
- Automatic rebalancing
- Track record
- Mean-Variance Optimization
Tyro Payments, a Sydney company founded in 2003, is an Australian financial institution specializing in merchant credit, debit and electronic funds transfer at point of sale (EFTPOS) processing credit, debit, gift, loyalty and Medicare cards. In hopes to compete with the nation’s Big Four Banks, they are the first Australian tech company to receive a banking license from the Australian Prudential Regulatory Authority. Tyro Payments’ platform wants to make banking faster and easier by integrating with different software systems, and the company offers cash flow-based loans. Tyro Payments currently works with 14,000 Australian businesses and processes over AUD $8 billion in transactions each year.
- Company: Tyro Payments
- Started: 2003
- HQ: Sydney
- Linkedin Employee Count: 208
- Co-founders: Peter Haig (CIO), Andrew Rothwell (CTO), Paul Wood (CTO)
- Product: FinTech, Finance Services
- EFTPOS Tap & Go: Connects to users’ POS/PMS via Wi-Fi or broadband and offer sub 1.6-second card payment processing speeds
- Smart Account: Fee-free business account
- Fraud Prevention
- PCI Compliant
- Integration architecturein
- 24/7 Support
Maestrano, a Cloud Marketplace As A Service startup, was founded in 2012 by two French engineers living in Sydney. Maestrano is a cloud application host for small businesses and management solutions offer a simpler, integrated approach of legacy applications not designed to be cloud-hosted. Both of their cloud-based virtualization layer and app management system is hosted by Amazon, uses 128 bit SSL encryption, and is level 1 PCI compliant. Their suite of products offers an integration of over 33 different cloud applications ranging from human resources, customer relationship management, enterprise resource planning. Its pricing model allows customers to choose to pay per hour of use for one app – as little as 15 cents an hour for up to five concurrent users – and a monthly plan for another app depending on usage.
- Company: Maestrano
- Started: 2012
- HQ: Sydney
- Linkedin Employee Count: 20
- Co-founders: Stephane Ibos (CEO) & Arnaud Lachaume (CTO)
- Product: Cloud Marketplace As A Service
- 100% Cloud-Based Solution
- Automated configuration and upgrades
- Connec!™: All 3rd party applications hosted on platform with no coding or configuration required
- Impac!™ : Real time dashboard that displays all application results
- Star!™: In-App User Training
- Enterprise: Subscription service pricing plans
Currently the Australian startup scene is small, but they are have potential for massive growth. The fledgling Australian tech sector composes of approximately 1,500 firms created in the last several years. There were previously few startups created between 2001 to 2006, but a significant increase of activity from 2007 onwards has created many of today’s Australian startups. According to Google Australia and Pwc’s 2013 report, the Australian tech startup sector has the potential to contribute $109 billion or 4% of GDP to the Australian economy and 540,000 jobs by 2033 with aggregated efforts from venture capitalists (VC), the Australian government, and startup accelerators.
Four cities rapidly developing startup ecosystems – Sydney, Melbourne, Perth, and Brisbane – will become the heart of Australia’s economy. According to Startup Muster’s 2015 Report, New South Wales is the startup capital of Australia with 46.5% of ventures choosing the state as their headquarters. Sydney has the largest proportion of startups with 44% based in the city compared to Melbourne with 17%. Sydney as the largest of the four exhibits many of these conditions that fosters a pro-entrepreneurship culture successful startups and predecessors role models as more startups reach maturity and exit IPOs.
The issue with Australia’s startup scene is still that the nation growing at a slow pace when compared to developing countries with their own bustling startup scenes. Startup Compass’ 2015 Global Startup Ecosystem Report states that Sydney ranks 16th from 20 cities on the Startup Ecosystem Index. While Sydney and Melbourne are building larger startup ecosystems, but startup industry is growing slower and performing worse in terms of economic outcomes when compared to all other Western nations.
Australia’s startup culture also appears to be an isolated organism. The nation absolutely have the means to become a tech powerhouse since the economy boasts a $1.376 trillion GDP and they are 12th largest in the world. But as the continent is far away from the rest of the world, the distance makes it difficult to build a global business and with a small market as a base. Australians are conditioned to take less risks in the market and as a result, this is one of the main factors for why they are globally in the lower ranks.
According to The Australian Private Equity & Venture Capital Association Limited (AVCAL), Australia’s total private equity and venture capital investment for the financial year ending in 2015 came to $3.1 billion in FY2015, approaching the same levels as three years ago. However, the number is quite dismal compared to India at $7.2 billion or Israel at $2.6 billion.
This ecosystem is growing in scale and strength and the next wave of startups can drive it to the next level of maturity.
|City||Founded||# of Employees||VC Raised (M)||Market|
|Shoes of Prey||Sydney||2009||10-Jan||$24.05||eCommerce|
|The Iconic||Surry Hills||2011||10-Jan||$72.00||eCommerce|
|Society One||Sydney||2011||Nov-50||$28.74||FinTech, P2P|
|Tyro Payments||Sydney||2003||101 – 250||$103.59||FinTech|
|Prospa||Sydney||2012||101 – 250||$42.18||FinTech|
|Campaign Monitor||Sydney||2004||101 – 250||$250.00||Software|
VUL9 is a brand new cybersecurity startup that just started in 2015, and their staff includes a mix of White Hat hackers and IT experts that exposed vulnerabilities on Fortune 500 Technology companies such as Google, Facebook, Yahoo, Twitter, Samsung and Adobe. VUL9 specializes in Networks and System Safety, Payment Security, Infrastructure Defense and Data Protection, Training & Certification and Security Software development. They support companies throughout a complete IT Security Lifecycle, with an area of expertise that extends to security gap assessments, consulting, implementation, managed services, networking, remediation & incident response. VUL9 Security Solutions brings an unparalleled expertise to the table, and they are poised to become a leading cybersecurity firm in the Middle East.
- Company: Vul9
- Started: 2015
- HQ: Abu Dhabi
- Linkedin Employee Count: 5
- Co-founders: Mohamed Amine Belarbi
- Product: Cybersecurity Solutions
- Remediation & Incident Response
- Security Consulting
- Managed Security Services with 24/7/265 Support
- Penetration Tests
- PCI Compliance
Souktel is the Middle East’s first service platform that connects job-seekers with employers and communities via cell phone. Founded in Ramallah, Palestine in 2006, Souktel is a social enterprise with the aim to transform labor markets by helping job-seekers from poor rural communities, marginalized urban communities, or refugee camps and to provide productivity for businesses that need qualified workers. Souktel’s JobMatch service helps young people with information about jobs, internships, and training, while AidLink connects aid agencies with people in need. The technology is used in over 15 countries across Africa, Asia, Latin America and the Caribbean, with new locations and services added each month.
- Company: Souktel
- Started: 2006
- Raised: $1.29M in funding
- HQ: Ramallah
- Linkedin Employee Count: 24
- Co-founders: Jarrett Goetz (Co-Founder & Advisor) and Jacob Korenblum (President & CEO)
- Product: Mobile Application Platform
- AidLink – Links aid agencies with key information about community crises
- MatchMe – Digital outsourcing supply/demand matching platform
- Integrated mobile & web data collection, mapping, and reporting
- On-demand mobile web, audio & text content platforms
As the the Middle East’s answer to Hulu, Cinemoz.com is the very first Arab premium video-on-demand (VOD) platform. It was publicly launched in Beirut, Lebanon in 2012 having secured the necessary funding with the help of Seeqnce, a Middle Eastern start-up catalyst based in Beirut. Cinemoz offers popular Arabic-language films and television series, and also independent documentaries and short films for free. Content is also tailored to suit each country in the Arab world. And in order to compete with other Middle Eastern VODs, they differentiate by offering brand new series, recent films, and shorts.
- Company: Cinemoz
- Started: 2011
- Raised: $1.5M in funding
- HQ: Beirut
- Linkedin Employee Count: 11
- Co-founders: Karim Safieddine (Founder and CEO)
- Product: video-on-demand (VOD) platform
- Social Media-backed community to rate and review content
- Remoz Control – Share movie on Facebook or Twitter including video snapshots
- App Fully Compatible with Mobile and Tablets
- Monthly Subscription Plan or Free with minimal ads
- Each country in MENA offered a bespoke service around the content they view
- Large online of on-demand video content
Technology is quietly transforming the Middle East (MENA). Booming, lucrative startup scenes are leading the Arab region and becoming a viable destination for venture capitalist (VC) money. Economic tide is turning positively for MENA countries that have embraced startup companies, giving potential for young Middle Eastern entrepreneurs to change the region. Middle Eastern startups and VC investors are focusing more on business-friendly cities such as Dubai, Amman, Beirut, and Cairo, where entrepreneurship can be recognized and where millions of dollars are flowing from the city and other MENA countries.
Startup operations were previously difficult in the Middle East due to political turmoil, poor infrastructure and bureaucratic inefficiencies. Major events such as the civil war in Syria, rebuilding in Iraq, World Cup 2022 controversies in Qatar and the rise of ISIL paints a negative picture for the rest of the world. These factors makes it difficult to become an entrepreneur, and more importantly, attract outside investors.
With poor infrastructure and high unemployment rates, this would be a difficult challenge for the tech sector to tackle. Youth unemployment rates in MENA, at 21% in the Middle East and 25% in North Africa, are higher than any other region in the world, and university graduates make up nearly 30% of unemployed in MENA. There is clearly a talented labor force that could further propel viable, strong startup ecosystems everywhere.
However, what budding startup environments MENA is developing paints an entirely different picture. What was once barely existent present five years ago, now investment firms such as startup accelerators and more than 20 local VCs exist and continue to appear everywhere. The proliferation of seed investment firms across the region demonstrates the talent, energy, and labor force that Middle Eastern startups can offer. These creative incubators bring Silicon Valley-inspired ideas, offering an opportunity for entrepreneurs to build a business and tackle civil society problems left void by governments with creative solutions.
The major cause for the entrepreneurial shift in MENA startups is the increasing access to mobile internet. More Arabs are connecting to the internet at an overall rate of 52.2%, or over half of the entire region. According to 2013 data, MENA sees a mobile penetration rate of 109%, with Saudi Arabia exceeding the global rate at 170%. Additionally, 88% of the online population in the Middle East uses social networking on a daily basis which is the highest in the world, with users frequently going on Facebook, Twitter or WhatsApp. Demand for Internet services will increase significantly in the next few years due to the availability of fiber-optic networks at very high speeds in large cities, growing Internet content, and the spread of smartphone devices.
As observed with emerging markets such as Brazil or India, when the Internet user base grows to a significant size, they immediately start experiencing vast amounts of capital. With the internet penetration reaching a critical threshold, MENA will start experiencing a “hyper growth” of international VC dollars. They replicate globally proven business models from other developed or developing markets, and are typically followed by regional or local investors.
Even more importantly, many MENA startups are solving the problem with the gender gap that Silicon Valley has ignored for years. Although only women Internet entrepreneurs account for 10% of the world, an estimated 23% are in MENA. Since internet usage for most MENA countries are relatively new, cultural bias against women typically does not exist. While more than half of university graduates in the Middle East are women, only 21% of the workforce consists of women. However, the Internet proves a gender-neutral enough space which gives Middle Eastern women the opportunity to join the tech workforce. Even angel groups like Womena are increasing the numbers of women startup investors throughout the region. Technology has caused efforts to foster collaborative innovation and the international exchange of ideas, and brought women to the forefront of the tech sector.
Providing the perfect compromise, tech startups are allowing women in the MENA region to bring their talents to the business world. With an additional labor force coming from women, startups are offering Middle Eastern men and women transparency and inexpensive access to capital and markets, all of which will be essential for the MENA region’s economic growth.
|City||Founded||# of Employees||VC Raised (M)||Market|
|Careem||Dubai||2012||101 – 250||$71.70||App|
|Wysada||Amman||2013||51 – 100||$5.00||eCommerce|
|Fetchr||Dubai||2012||101 – 250||$11.00||App|
|HolidayME||Dubai||2013||51 – 100||$4.00||Website, Travel|
Clavis Insight provide eCommerce store analytic services to companies who primarily deal in eCommerce, primarily food and beverage, personal care, baby care, pet care, and household products manufacturers and brand owners. Clavis Insight analyzes a company’s products’ placement, portfolio and content integrity across leading online stores, mobile websites and mobile shopping apps using tracking report auditing, product analysis and customer reviews. The analysis enables them to optimize their digital channel distribution, content and presentment, in order to protect their brands and grow online and offline sales.
- Company: Clavis Insight
- Started: 2007
- HQ: Dublin
- Raised: $25.16M in funding
- Linkedin Employee Count: 117
- Co-founders: Garry Moroney (CEO), Simon Glass (CCO), Supriya Chaudhury (CMO), and Eamon Walsh (CTO)
- Product: eCommerce analytics
- Detailed reports on product availability
- Improved product search for consumers
- Media and Promotions Tracking
- Product Ratings and Reviews
- Online price tracker
NUMBER26 is a young fintech startup based in Berlin that aims to revolutionize Europe’s banking industry. NUMBER26 is Europe’s most modern way of banking, since most banks in Europe requirements making an appointment with a bank’s local branch, bring documents and fill a lot of forms, or sending documents to the post office if signing up online. Setting up a NUMBER26 account only requires a smart phone and takes a few minutes. At the end of the process, NUMBER26 starts a video call to verify a customer’s identity, which is then verified with a passport and answering a few security questions. Afterwards, a customer receives a card that works in all MasterCard ATMs and shops. All banking transactions and actions are primarily controlled through the NUMBER26 mobile app, with an emphasis on innovative features and user experience. So far, 70,000 people have signed up for Number26 in Germany and Austria, with plans for massive scale for the rest of Europe in the future.
- Company: Number26
- Started: 2013
- HQ: Berlin
- Raised: $10.73M in funding
- Linkedin Employee Count: 45
- Co-founders: Valentin Stalf (Co-Founder & CEO)
- Product: NUMBER26 mobile app
- Withdrawing cash free of charge worldwide
- Paying in foreign currencies free of charge
- Control Center with card blocking options
- Overdraft levels for up to €2,000
- MoneyBeam money transfers within seconds
- Push Notifications in real-time for all bank account transactions
- Statistics for account and spending behavior
Latin America (LATAM) has never been known as having a tech scene, but they are starting to prove how radically different they are. Although still in its inception, LATAM has potential to develop new tech hubs, with venture capital (VC) investments slowly gaining momentum in select countries such as Brazil, Mexico, Chile, and Colombia. Much has changed in the past 15 years in terms of its digital tech landscape and the emergence of new tech startups. Primary factors include a fast emerging middle-class, more stable political and regulatory climates, and increasing interest and comfort levels about investing in the region by VCs from the outside.
As indicated from the chart above, VCs have started to invest heavily into LATAM in the past five years. As of 2015, investments totaled up to an estimated $4.27bn with investments up 39 percent with $3.58bn being deployed, and exits generated $1.74 billion, an 8 percent increase compared to 2014.
Brazil, Chile, and Mexico prove to be some of the most successful LATAM countries in terms to scoring VC deals. According to McGraw Hill’s “Deal Trends in Latin America” June 2014-15 data, 48 percent of the deal value is represented by Brazil, followed 22 percent from Mexico, and 19 percent from Chile.
Some LATAM countries are pushing for aggressive efforts to increase internet penetration, and they are doing so through experimentation with government-led support programs. With Mexico’s program “México Conectado,” efforts have brought the internet to nearly half of the country at 46 percent. In Brazil, fibre optic deployments in the country significantly increased internet usage, with over over 40 percent of the country’s households have broadband connectivity with an average of 2.6Mbps and the largest 4G penetration in the region. In Colombia, the Colombian government has Live Digital, a $2.5 billion campaign which aims to have 27 million people connected to the Internet by 2018, a figure representing 63 percent of the population. And Chile leads the LATAM region in terms of internet penetration at 65 percent with plans to increase to 80 percent through 2020.
There are even government partnering up with local accelerators such as Start-Up Peru in Lima, Incubar of Argentina, Brazil’s SAMPAdigital, and Colombia’s iNNpulsa. With initiatives in place and the region’s internet usage increasing, these serves as the catalyst for creating local startup environments.
The biggest advantage for a developing tech scene in LATAM is the younger demographic and their constant mobile consumption. With the availability of affordable smartphones manufactured in China and Korea at a sub price of $100, more Latin Americans are connecting to the internet and using a variety of mobile app services. According to a study by IMS and Comscore, LATAM has some of the highest social media and mobile usage rates in the world. More than 9 out of 10 Latin Americans own a cell phone and 60 percent of the mobile users consider social media apps such as Twitter, WhatsApp, Spotify and Waze as an important part in their day-to-day life. Bogotá, Sao Paulo, México City, Santiago and Buenos Aires have more users than New York or L.A. With mobile penetration expected to increase in LATAM to approximately 50 percent by 2018, the impact that this region will have on social, mobile and local startups will be tremendous.
|City||Founded||# of Employees||VC Raised (M)||Market|
|Easy Taxi||São Paulo||2011||1k – 5k||$77.00||Mobile|
|Dafiti||São Paulo||2010||1k – 5k||$249.30||eCommerce|
|Nubank||São Paulo||2013||151 – 250||$98.30||FinTech|
|Avenida||Buenos Aires||2013||251 – 500||$50.50||eCommerce|
|Properati||Buenos Aires||2012||$2.23||Real Estate|
|iFood||São Paulo||2011||101 – 250||$61.86||Mobile|
|PSafe||Copacabana||2010||101 – 250||$90.00||Software, Cloud|
|Mobly||Jundiaí Do Sul||2011||$20.00||eCommerce|
|Resultados Digitais||Florianópolis||2011||101 – 250||$7.02||Cloud|
Israel have proved themselves to be a startup technology powerhouse. For the past several years, they have been been made famous as the Startup Nation due to the sheer number of startups within the small country. With only 8.4 million Israelis in population, only .01% of the world’s population, the country has the highest startup density in the world at over 6,000 startups and attracts more venture capital per person than any other country in the world. They have the dynamic entrepreneurial culture akin to Silicon Valley, with their own cultural brandmark. While most of the focus has been going to the U.S. or the APAC region, Israel stands to become the next point of interest for venture capitals (VC).
Within their startup ecosystem, it is clear that the startups have been churning lots of capital in the past several quarters. By 2015 Q3, a total of 506 Israeli high-tech companies raised $3.bn in capital, far exciting 2014’s $2.3bn record. Later stage large fundraising deals by startups of $20 million or more amounted to a total of $703 million and 64% of overall capital deals.
Historical, political and societal factors is what truly influenced Israel’s prowess in technology. It’s amazing considering how Israel performs so well within their boundaries. Israel is the most resilient region in the Middle East with its’ tumultuous and politically contiguous borders. There over 70 different nationalities living in the small country, wildly diverse with different ethnic, religious, and tribal cultures.
With very few allies next door and main trading partners located in Europe and the U.S., Israel cannot depend on cross border trade or having steady relations with their neighbors. And as country with a severe lack of natural resources and often subjected to drought episodes, Israel had to rely on gas exports or develop alternative sources of energy. [Read more…]
Asia is generating a constant stream of billion-dollar success stories, and venture capitalists (VC) are definitely paying close attention with their investment dollars. With economic growth, a rising new middle class, growing urbanization across Asian cities, and more mobile reach to developing countries, Asia is securing more investments than any other region outside the U.S. The market share happening in the continent could very much soon rival that of Silicon Valley’s. Given Asia’s high GDP growth and rapidly growing market size, Asia’s economic power is incentivizing VCs to pour capital into more startups.
Huge population concentrations are the main advantage for the APAC region, with a total population of more than 4.3 billion, with at least 1 billion in China and India. However, one challenge is to increase internet usage for the entire region, an untapped market with huge market potential. Asia also has 48.2% of the world’s Internet population with a 40.2% penetration rate so far, and the rest of world is at 51.8%. With billions of people, that is the main factor at stake for many Asian cities to become the next major tech hub, and VCs are definitely taking that fact into consideration.
Mobile is the future of the internet, and will increase further penetration rates. The innovation of smartphone technologies has definitely influenced Asia, as the APAC region will generate 40 percent of total smartphone traffic by the end 2021, due to a populous region and a rapid growth in mobile subscriptions. China and India have two of the world’s largest smartphone markets, making investors interested in figuring out how to make more money from their consumers. [Read more…]
In the past several years, Europe has matured into a vibrant tech ecosystem. VC investments in Europe topped at $10bn by the end of 2015. And according to Dow Jones VentureSource data, VC funding for the continent’s tech groups almost doubled from $4bn a year to $7.75bn between 2010 and 2014. In the first three months of 2015, companies in the sector raised just over $2.5bn, the highest for any quarter since the start of the decade.
Since 2013, there have been a large increase in unicorns. A series of new venture funds have sprouted in search of the next generation of European start-ups, and 10 European companies reached billion-dollar unicorn valuations, making a total of 35 since 2003. The current average unicorn valuation is at $3bn, with company giants such as Spotify, Rocket Internet, and Skype paving the way.
However, Europe has a lot of catching up to do as the continent’s investment dollars still does not compare to U.S. VC funding levels. From 2014-15, Europe has garnered merely a tenth of what the U.S. earns. In 2015, the U.S. has produced roughly twice as many startups as the whole of Europe, all of which have collectively received around 10 times as much funding with $62 billion total investment in 2015 Q3, compared with just $6.6 billion for European startups. Most VCs do not invest in the funding stages until later, causing a significant late stage funding gap in Europe. Thus, there is a big financing gap remains present between the U.S. and European tech ecosystems.
The gap demonstrates that many VCs simply do not place enough confidence in Europe as of yet. VCs are willing to invest in U.S. companies since the U.S. have a long track record of successful startups in Silicon Valley. Europe has a lot of potential to truly grow as a global tech leader, but European startups need to display more visibility for U.S. VC firms. Compared to the U.S, Europe has a series of challenges ahead: they have not really produced its expected share of unicorns, scaling and exits are more difficult, valuations are typically lower, European attitudes to risk are more cautious, and Europe is not yet a single digital market like the U.S. [Read more…]