Endeavor Catalyst’s top 10 predictions for global venture capital in 2025

Endeavor Catalyst, our rules-based fund, has made 30 new investments in 2024 to date, bringing our overall pool of investments to more than 340 all over the world. Across fields including software, financial technology, biotech, artificial intelligence, and robotics, these companies are tackling key challenges and transforming every aspect of society. 

As funders, we are meeting founders where they are. Space satellites are being built in Bulgaria for commercial and scientific use. One of the world’s most popular Web3 games is being developed in Vietnam. Some of the most exciting likely IPOs are coming from Brazil. It’s never been more clear: emerging markets — or as we call them, elsewhere markets –  aren’t just participating in global innovation efforts, they’re leading them.

To kick off 2025, we’ve assembled our brain trust and come up with our top ten predictions for venture capital and entrepreneurship around the globe. 

1. Expect more tech IPOs from superstars in emerging markets.

Public investors are embracing high-performing companies from across the globe, with many expressing confidence in the potential of e-commerce and fintech in Latin America in particular. With regional companies like Mercado Libre (Nasdaq: MELI) out of Argentina and Nubank (NYSE: NU) out of Brazil exceeding $100B and $60B in market cap respectively, public investors are expressing confidence in the growth potential of e-commerce and fintech in Latin America. Companies to watch include: Creditas (Brazil), Rappi (Colombia), EBANX (Brazil).

In our own portfolio, MNT-Halan (Egypt) has stated that it is considering an IPO, and Carsome (Malaysia) has been evaluating its local exchange over New York for a potentially higher valuation. 

The Saudi Stock Exchange and the Singapore Exchange are also actively engaging tech companies and attracting international investors, leveraging recent regulatory improvements and combating the lack of depth narrative. Tabby (Saudi Arabia) is expected to list on the Saudi Tadawul stock exchange, though no date has been confirmed.

2. Established companies in Latin America and the Middle East will actively invest in and acquire smaller players.

Seeking innovation, established companies are increasingly turning to startups to drive growth in areas such as AI, sustainability, and digital transformation. Within our own portfolio, we see private and public companies taking on the role of investor and acquirer – often via corporate venture capital arms (CVCs).This move embodies Endeavor’s Multiplier Effect, where founders build their ecosystems by mentoring, investing in, and inspiring the next generation of entrepreneurs.

Unifonic, based in Saudi Arabia, recently launched X, a venture studio and accelerator fund that supports software startups in the MENA region. Globant’s corporate venture fund, Globant Ventures, is actively investing in technologies that seek to reinvent business through the lens of AI, Blockchain, and Future of Work, and has backed some of our very own Endeavor Entrepreneurs, including Elsa (Vietnam). Beyond capital, CVCs often provide strategic partnerships and market access, serving as key allies within specific industries.

3. Secondary activity will accelerate year-over-year as GPs/LPs seek liquidity.

It is no secret that the market has been quiet on the exit front — both for IPOs and M&A — following the liquidity boom in 2021/22. As funds seek to deliver distributed-to-paid-in capital (DPI) to LPs, we expect to see increased activity in secondary markets. 

Following a record in capital raised for secondary markets in 2023 of $93B, 2024 has recorded $68B in capital raised in just the first six months of the year, poised to set a new record. 

In our own portfolio, we’ve seen secondary sale opportunities in recent financing rounds, including Contabilizei’s (Brazil) latest $125M round and Insider’s (Turkey) $500M Series E round. In both cases, we invested early in the company’s life cycle, and the opportunity to generate liquidity for our LPs at a meaningful return is compelling. 

4. Bitcoin will hit $150,000, bolstered by elsewhere markets.

The forces that gave way to the rise of challenger banks such as Nubank (Brazil) in Latin America and TymeBank (South Africa) in Africa will also contribute to the rise of cryptocurrency in emerging markets. The widespread adoption of smartphones and digital technology, a growing desire for convenient and accessible banking services, and favorable regulatory action has created a hospitable environment for cryptocurrency. However, adoption remains relatively low, with only 7% of the world’s population being crypto owners.

One area in which cryptocurrency can aid financial inclusion is bank transfers – particularly cross-border – which has historically been costly and bureaucratic via incumbents like Western Union and Moneygram. 

In our own portfolio, we have a number of crypto exchanges in Latin America (e.g. Bitso (Mexico), MercadoBitcoin (Brazil)), as well as companies tackling employee payroll and benefits (e.g. Glim (Miami)), among others. With increased regulation, we believe cryptocurrency will facilitate cost-effective and innovative financial solutions for consumers, particularly in emerging markets.

5. Space exploration will know no geographic bounds.

Check out some of our companies doing (inter)stellar things:

Satellogic (Argentina) specializes in Earth-observation satellites. 

D-Orbit (Italy) is building a space logistics infrastructure that will enable service providers to streamline satellite launch, across-orbit transportation, on-orbit servicing and refueling, and end of mission disposal. 

Endurosat (Bulgaria) designs, builds, and operates CubeSats and nanosatellites for commercial and scientific missions and is developing inter-satellite linking and data applications. 

Iceye (Poland) delivers persistent monitoring capabilities to detect and respond to changes in any location on Earth through its satellite constellations.

PLDSpace (Spain) is developing reusable rockets.

Recent technological leaps have democratized access to space around the world. What once was limited to the US and Russia, space exploration and innovation is happening out of Italy, Argentina, Bulgaria, Poland, and beyond. We see major tailwinds contributing to their traction including lower development and launch costs due to technological innovation, and AI’s ability to process large volumes of data.

6. Latin America will benefit from its nearshoring advantage, primarily in Mexico.

As US companies seek to reduce their dependence on China and others for manufacturing, and pursue more efficient and cost-effective business practices, Latin America stands out as an attractive alternative, offering low costs, skilled labor, and logistical ease. Nearshoring could add an annual $78B in additional exports of goods and services in the region, which will require improved infrastructure in trade, connectivity, transportation, and logistics, much of which can be addressed with technology. 

However, to fully realize this potential, Latin America must improve its physical and digital infrastructure. At Endeavor, we see Mexican companies NowPorts, the first and largest 100% digital freight forwarder in Latin America, and NuvoCargo, an all-in-one digital platform for cross border trade, capitalizing on the nearshoring opportunity with customized logistics solutions. 

7. Venture capital and innovation will thrive in the Middle East.

The Middle East has taken comprehensive steps to diversify its economy and prepare for a post-oil era. Over the last decade, Saudi Arabia and the UAE, for example, have strategically built an ecosystem that attracts investors and is conducive for foreign investment. Incentives include streamlined bureaucratic processes, new foreign-investment laws, tax breaks, and residency permits to promote private-sector growth, and more. In addition to a favorable regulatory backdrop, significant capital has been earmarked for sovereign wealth funds to support these initiatives. 

As more global funds tap LP capital from the Middle East, we expect to see them set up local operations in the region. Furthermore, we expect the presence of these funds to have lasting effects on the ecosystem. Within our own network, General Atlantic announced plans to establish a presence in Abu Dhabi, and TPG has moved a few team members to the city-state as well. We hear a number of other funds with no history in the region are actively exploring investment opportunities.

8. Investors will turn to Europe for AI deals.

The US is the global leader in AI, with nearly 30 deals of over $100M this year. That said, Europe is not too far behind with 14 AI investments valued at $100M or more, and we expect this trend to continue. 

Technical talent is abundant in the region, and numerous success stories are helping boost the narrative. ElevenLabs (Poland), an AI voice generator valued at over $1B, and Druid (Romania), a conversational AI platform, have recently raised significant capital that will be used to extend their global footprint. 

Other companies are helping to support the growing AI ecosystem like Submer (Spain), which offers immersion cooling technology for datacenters to address the rising energy and water consumption needs generated by the increasing power demands of AI applications.

9. Asia will lead the way for Web3 gaming.

As Web3 strengthens, the gaming industry is entering a new era. This revolution is granting players true ownership of digital assets, providing developers with alternative financing through token sales, and allowing gaming organizations to experiment new monetization strategies and partnerships. The Web3 gaming market was valued at $26B last year, with a compound annual growth rate of 19.2%, and Asia alone accounts for 55% of the world’s total gamers. 

With its tech-savvy population and strong blockchain adoption, Vietnam is uniquely positioned to mint industry leaders. Vietnamese unicorn Sky Mavis developed Axie Infinity, one of the largest NFT projects to date, and Ronin, the top gaming-centric blockchain. Mineski, a pioneer esports company in Southeast Asia, has also set up headquarters in Vietnam.

10. Africa will fuel the rise of “embedded finance”.

Embedded finance — the integration of financial services into non-financial products — is poised for significant expansion in Africa, driven by key product innovations, strategic partnerships, and supportive regulatory changes. 

Apollo Agriculture, a commercial farming platform, is also known as an agricultural fintech since it offers insurance and financing to small-holder farmers. Twiga Foods, a food supply platform, also developed a blockchain-based financial organization to provide retailers with access to microloans. We also see companies leveraging buy now, pay later initiatives to offer credit lines to their customers including Nigerian companies Vendease and TradeDepot.