Top tier countries, half-baked startups
Most investors go for startups in top-tier countries; not because of the language barrier, but because there are hardly any.
Despite that, the highest growth stays in emerging markets making accelerators the preferred choice for vetting ideas.
Other options in these markets are wholely owning local entities by creating a PE, and not just founding a VC.
Emerging markets are better
The highest growth in GDP belongs in tier 3 countries:
Vietnam leading the way in South East Asia with 6.5%.
Ethiopia leading the way in Africa at 10.2%.
These numbers tell a story: sustainability doesn’t exist in tier 1 countries anymore.
The future of tier 3 countries lies in investing in ecosystems, not in individual startups.
Accelerators serve as extensions for vetting processes, not just for taking startups from Point A to Point B.
Acceleration programs in these countries attract more seasoned startups with strong nuclei, which hardly exist in newly-founded startups.
No better time than the present
Big corporations and governments are already there.
But $500K in Africa is equivalent to $3MM elsewhere.
Small investments go a longer way in these emerging markets, so it’s time for you to be there.