State of VC: Our 2024 Mid-Year Snapshots From Across The World

Venture capital activity appears to be normalizing around pre-pandemic levels, following a period of exuberance – and the subsequent correction – that was felt around the world. This transition from abundant capital to a more constrained capital environment has led to lower valuations, smaller round sizes, and fewer deals overall, a trend that has been reflected in the Endeavor Catalyst portfolio globally. The range of experiences in our markets, however, reaffirms the importance of strategic global diversification. While significant macroeconomic risks remain, including higher-for-longer interest rates and sustained geopolitical uncertainty, there are reasons to be optimistic in the private markets. 

At Endeavor Catalyst, we see how individual markets are adapting to these evolving dynamics, and how Endeavor Entrepreneurs are leading their companies through the natural ebbs and flows of venture capital and company building.

Check out the Regional Snapshots presented by our Regional Leads at our recent Investor Meeting in San Francisco, California to learn more.

Mid-Year Snapshot

• VC funding in Latin America returned to pre-pandemic levels, reaching $4B in 2023, a 75% decrease versus record-breaking 2021.

• Beyond fintech, which has historically received the most VC funding, other sectors like software, climate tech, and proptech are gaining traction.

• Brazil still leads the way as the country receiving the most VC dollars, though Colombia now boasts the second-highest VC investment volume in 2023.

• Mexico’s market continues to mature, primarily in the early stage as the number of angel investors and Corporate Venture Capital firms (CVCs) increases.

• While mega-rounds may be less frequent, we believe a focus on seed and early-stage funding will fuel a new wave of innovative startups.

Our LATAM Portfolio At a Glance

Mid-Year Snapshot

• Endeavor Catalyst has seen tremendous growth in capital deployment in Saudi Arabia and Egypt over the last three years, propelled by various governmental initiatives.

• Of the top five funding rounds in 2023 in MENA, four companies are Endeavor Entrepreneurs. Magnitt recognized Endeavor Catalyst as the most active global investor in Series A and B by number of companies in the MENA region.

• Fintech and ecommerce companies continue to attract the majority of capital in the region. The largest recent funding rounds have been in the fintech space, including Tabby (UAE), Tamara (Saudi), and MNT Halan (Egypt) which all reached unicorn status.

• Increasingly, we are seeing global funds like General Atlantic relocating staff from London to Saudi Arabia and the UAE. Further, we believe global funds from China, Southeast Asia, and Europe will increasingly turn their attention towards startups in the Middle East as the ecosystem matures.

Our Middle East Portfolio At a Glance

Mid-Year Snapshot

• According to Pitchbook, the number of active investors in Europe’s venture capital ecosystem in 2024 has shrunk by over half as the industry still awaits a rebound, encouraging founders to look abroad to US and Gulf investors.

• When it comes to the red-hot sector of AI, Europe actually has more AI talent than the US, translating into multiple mega-rounds. However, the number of startups and volume of funds raised remains much lower than the US.

• Looking east, Turkey’s market has seen a handful of successful exits, like Peak Games acquired by Zynga for $1.8B, paving the way for future generations.

• While still trailing the UK, Germany, and France, we believe companies out of Spain and Italy will continue to attract significant venture funding.

• Central and Eastern Europe’s technical talent is becoming a key advantage in the AI era, driving meaningful growth in these markets.

Our Europe Portfolio At a Glance

Mid-Year Snapshot

• South Africa, Kenya, and Nigeria continue to attract the most venture funding on the continent, with significant growth seen in Nigeria and Kenya.

• Last year marked Endeavor Catalyst’s first successful African exit with the acquisition of InstaDeep, an AI company out of Tunisia. The company was acquired by BioNTech for ~$680M marking the largest exit for an African tech company in history.

• While fintech remains the leading investment sector on the continent, climate tech made significant strides in 2023, capturing a third of all VC capital. Read more on climate tech in Africa here.

• With an increase in successful exits, we expect to see more experienced founders become investors, fueling the African startup landscape. Within our own portfolio we have Ken Njoroge, co-founder of Cellulant, who founded the venture fund, Pani, and Melvyn Lubega, co-founder of Go1, who is now a partner at the venture fund, Breega.

Our Africa Portfolio At a Glance

Mid-Year Snapshot

• Investment dollars flooded into Asia in 2021-22, and companies clinched peak valuations. The market has been slower to rebound following the correction, however, and recent rounds have failed to close due to mismatched pricing expectations between founders and investors.

• After a quiet twelve-month period, Endeavor Catalyst recently made an investment in a company out of the Philippines. This investment is not yet public.

• In our own portfolio, we have observed Vietnamese companies getting to profitability quickly as founders from this market adapt to more capital efficient strategies.

• Companies out of Malaysia and the Philippines are also garnering increased interest from investors as they seek to diversify their holdings in Asia (away from Indonesia) and secure positions at lower valuations.

• In addition to investments in AI, many funds are looking into cleantech and green tech opportunities in the region.

Our Asia Portfolio At a Glance