Trends In Global VC+TechEMPEA’s Inaugural Report On Venture-Backed Startups Across EM

Today, Asia is an epicenter of global startup momentum and the year 2019 marked records for venture investment in a number of emerging private capital markets, including Africa, Latin America, Southeast Asia, India, and CEE & CIS. Venture Capital in emerging markets has more than doubled (in dollar terms) since 2014, tracing a steady growth trajectory that will be disrupted by the 2020 COVID-19 global health pandemic in ways foreseen and unforeseen.

As venture investors encourage their portfolio companies to shift to survival mode, the era of “growth at all costs” popularized in Silicon Valley and China appears to have ended for the time being.

Opportunities for innovation around health care, education, and logistics are at the forefront as we collectively adjust and respond to new global realities. One certainty: The resilience and resourcefulness of global entrepreneurs will be tested in the year ahead as the need for cost-effective solutions to complex problems comes into sharper view.

2Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

17

9

1

800

600

400

200

0

16.7

USD

BIL

LIO

NS

VC Fundraising By EM Region/Country (2015-2019)

USD

MIL

LIO

NS

2015 2016 2017 2018 2019

China India Southeast Asia Africa CEE & CIS Latin America Middle East Pan-Emerging Markets

6.1

2.1

392

98

221

383

136

8.9

2.1

221

125

240

6.4

1.2

743

473

79

2.3

425

139

522

103

10.1

2.0

226 208

19 40 22 51 52 40

236

438

805

960

287234

Venture Fundraising For Emerging MarketsEM VCs Raised USD16.5b In 2019

Southeast Asia 14.57b USD

OUT OF USD16.48B China: USD10.12b

More Money Was Raised For EM VC (Ex-China) Than Ever Before

*Excluding Japan, Australia, And New Zealand

118 Vehicles OUT OF 160

Emerging Asia* Dominated

Latin America

CEE & CIS

Emerging Market First-Time Fundraising By Strategy

Buyout

Growth

Venture Capital

Infrastructure & Real Assets

Private Credit

Source: EMPEA Data as of 31 December 2019. 10+18+52+7+13+A10%

18%

52%

7%

13%Proliferation Of New Fund Managers

First-Time VC Fund Managers Raised USD2.05b Across 43 Fund Closes In 2019

VC Funds Represented 52% Of Closes By EM First-Time Fund Managers In 2019 Steadily Climbing From 26% In 2011

EM VCs Will Face The 2020 Crisis From A Position Of Relative Strength After Two Consecutive Years Of Record Fundraising

2.05b USD 52 % Of Closes Dry Powder

Record Fundraising In 2019

2019 EM VC Fundraising Activity In Focus

Africa TLcom USD71m Final Close For TIDE Africa Fund; Novastar USD88m Second Close For Africa-Focused Fund II

CEE & CIS Earlybird USD134m First Close For Earlybird Digital East Fund II With A CEE & CIS Focus

China Legend Capital USD979m Final Close For Fund VIII; Lilly Asia Ventures USD750m Final Close For Biosciences Fund V

India Omnivore Partners USD101m Final Close For Its Second Agribusiness VC Fund; Accel Partners USD550m Final Close For India Fund VI

Latin America KaszeK Ventures Combined USD600m Raised Across Fund IV And Opportunity Fund I

Record Year According To EMPEA Data

Clos

es: 5

3

28 19 7 10 19 3 3

3Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

EM VC Investment By Geography

2015 2016 2017 2018 2019

Region/Country USDm USDm USDm USDm USDm Deals

China 12,071 13,925 16,652 24,918 15,007 595

India 4,403 1,958 1,811 3,822 4,436 371

Southeast Asia 430 517 716 1,631 2,574 256

Africa 70 108 111 183 764 53

CEE & CIS 219 103 164 181 259 39

Latin America 230 548 599 1,412 3,242 242

Middle East 276 656 94 61 153 45

Pan Emerging Markets 24 45 95 118 192 3

Emerging Markets 18,014 18,216 20,604 32,925 27,434 1,681

Source: EMPEA Data as of 31 December 2019.

VC Investment In Emerging MarketsA Steady Climb

EM VC Is Evolving From Consumer-Facing Tech To More Verticalized Sectors

EM Venture Investment More Than Doubled Since 2014

2019: USD27.43b

2014: USD12.64b

Availability of Late-Stage Funding Ignited Record-High Ticket Sizes In 2019

India Ticket Sizes Were On Par With 2018; Median Deal Size Decreased In China

Markets With Record VC Investment In 2019 (USD)

EM VC Has Seen A Steady Growth Trajectory With VCs In Silicon Valley And China Increasingly Looking Outward + Local Funds Emerging And Gaining Traction

Africa Southeast Asia

Latin America

Middle East

CEE & CIS

Africa More Than Tripled In Dollar Terms Y-O-Y

Enterprise Software

Fintech Health Care

Logistics

Africa India Southeast Asia

Latin America

CEE & CIS

Record Year According To EMPEA Data

4Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

Fintech

Logistics/Rideshare

Music Streaming

2019 Top Africa Deals By Size

Investor(s) Company Country Description Value (USDm)

TPG, Katalyst Ventures, Oakhouse Partners ZiplineAfrica Regional Investment

Logistics: Drone delivery of medical supplies in Rwanda and Ghana; HQ: Silicon Valley*

190

Meituan Dianping, Bertelsmann, DragonBall (Longzhu) Capital, Gaorong Capital, GSR Capital, IDG Capital, Redpoint Ventures, Sequoia Capital, SoftBank Ventures Asia, Source Code Capital

Opera Pay (OPay)

NigeriaFintech: Mobile payments, transportation, and food delivery; HQ: Lagos

120

CRE Venture Capital, Spark Capital Andela NigeriaEdtech: Trains developers and hires them out to global tech companies; HQ: New York*

100

Opera, GSR Ventures, IDG Capital, Meituan Dianping, Sequoia Capital, Source Code Capital

Opera Pay (OPay)

NigeriaFintech: Mobile payments, transportation, and food delivery; HQ: Lagos

50

Investment Fund for Health in AfricaCarePay International

Africa Regional Investment

Fintech: Mobile health data and payments in Kenya, Nigeria, and Tanzania; HQ: Amsterdam*

45

Sawari Ventures, BECO Capital, DASH Ventures, Endeavor Global, MSA Capital, Oman Technology Fund, Vostok New Ventures

Swvl EgyptTransportation: Shared transportation in Egypt; HQ: Cairo

42

*Companies that are headquartered in developed markets are included in EMPEA data when they operate exclusively or primarily in emerging markets and target customers in these geographies. Source: EMPEA Data as of 31 December 2019.

Chinese VCs Increase Activity In Africa

266.5m USD

More Than Double The USD91.9m Invested In The Previous Four Years Combined

2019 VC Investment In Africa

2019 Country Highlights

2019 VC Investment In African Fintech

764m USD

53 Deals

More Than A 10X Increase Since 2015

500 Startups

Algebra Ventures

Goodwell Investments

CRE Venture Capital

2019 Most Active VC Investors

3 OF 6Top Rounds

Chinese VCs Participated In Three Of The Top Six Rounds By Amount In Africa As Well As In Rounds For Boomplay (Nigeria), Lori Systems (Kenya), GONA (Nigeria)

2019 Chinese Investors Funded A Range Of Opportunities In Africa:

Spotlight On Africa

Nigeria: USD358m Nearly Half Of All VC Dollars Deployed In Africa

Regional: USD241m

Egypt: USD54m

Crossborder Activity These rounds include participation of a Chinese VC.

5Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

2019 Top India Deals By Size

Investor(s) Company Description Value (USDm)

Tencent Holdings, Altimeter, Citi Ventures, DST Global, Footpath Ventures, GGV Capital, Hillhouse Capital Management, Lightspeed Venture Partners

UdaanE-commerce: B2B platform for manufacturers, traders, retailers, and wholesalers

585

B Capital Group, Accel Partners Blackbuck (Zinka Logistics) Logistics: Trucking and shipping logistics 150

Sequoia Capital, Dragoneer Investment Group, DST Global, General Catalyst Partners, Greenoaks Capital Management, Hillhouse Capital Management, Ribbit Capital, Tiger Global Management

CREDFintech: Member rewards platform for paying credit card bills

120

Accel Partners, Chiratae Ventures, Epiq Capital, Kalaari Capital, Oaktree Capital Management

Curefit HealthcareHealthtech: Platform for fitness and wellness classes and experts

120

Sequoia Capital, Agnelli Family Office, KCK Global, Moore Strategic Ventures, Unbound

Cars24 E-commerce: Marketplace for used cars 100

Source: EMPEA Data as of 31 December 2019.

Spotlight On India

India Edtech In Focus

Notable Edtech Investments (2019)

Investor(s) Company Value (USDm)

Sequoia Capital, Blume Ventures, Nexus Venture Partners Unacademy 50

Tiger Global Management, LGT Capital Partners, Omidyar Network, TAL Education, WestBridge Capital Vedantu Innovations 42

Sequoia Capital Eruditus Learning Solutions 40

Nexus Venture Partners, Omidyar Network, Owl Ventures WhiteHat Jr 10

Inventus India, Centre for Innovation, Incubation, and Entrepreneurship (CIIE), Chiratae Ventures, Parampara Capital and Management Consultants

Play Shifu 5.8

Lightbox Ventures Flintobox 4Source: EMPEA Data as of 31 December 2019.

Alteria: 11 Venture Debt DealsTrifecta: 13 Venture Debt Deals

4.4b USD

371 Deals

2019 VC Investment In India

Record Year For VC Investment

Notable Venture Debt Activity

Just Surpassing The USD4.4b Deployed In 2015 And The 331 Rounds Completed In 2018

2019 VC Investments In Indian Edtech

172m USD 18 Deals

Edtech Remains A Key Investment Theme Since 2017 And Reliance Jo's Entrance To The Telco Market. Despite Being Less Than 10% Of Invest-ment In 2019, Edtech Will Become Increasingly Relevant In 2020

A Form Of Verticalized Lending, Education Finance Is Emerging In India As Credit/Debt Offerings Meet The Growing Population’s Access To The Formal Financial System

2019 VC Investments In Indian Education Finance

44m USD 4 Deals

Sequoia Capital

Accel Partners

Chiratae Ventures

Blume Ventures

Matrix Partners

Tiger Global

2019 Most Active VC Investors

6Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

55%

2019 Top China Deals By Size

Investor(s) Company Description Value (USDm)

Morningside Ventures, Hillhouse Capital Management, Linear Venture Horizon Robotics Robotics: Developer of AI chips for robots. 600

Xing Wang, BlueRun Ventures, Funcity Capital, Future Capital (FutureCap), Intime Department Store, Source Code Capital

Lixiang (Chehejia) Cleantech: Developer of electric vehicles 530

Tiger Global Management, CMC Capital Partners, Gaorong Capital, Joy Capital (Yuyue Capital), Primavera Capital Management

Danke Apartment Proptech: Digital apartment management 500

Baidu Capital, Linear Venture WM Motor Technology Cleantech: Developer of electric vehicles 446

Xiaomi, Matrix Partners, Morningside Ventures XPENG Motors Cleantech: Developer of electric vehicles 400

Source: EMPEA Data as of 31 December 2019.

2019 Was A Year Of Significant Global Collaboration On Cutting-Edge Health Technologies In China.

Notable Investors Active In Healthtech F-Prime, Lilly Asia Ventures*, Qiming Venture

Partners, Tencent, Wuxi AppTech*Most Active

2019 VC Investment In Healthtech

Total Healthtech VC Investment USD2.7b 112 Deals

Of That: Biotech/Pharma USD1.5b 49 Deals

Of That: Immunotherapies/Cancer USD1.2b 29 Deals Examples: Antegene, Burning Rock Biotech

Highlighted 2019 Healthtech Investments

Investor(s) Company Value (USDm)

Tencent Holdings, Eight Roads Ventures, F-Prime, IDG Capital, We Capital Medbanks 142

Shiyu Capital, Kaiyuan Guochuang Asset Management, Lecheng Medical Care, Lepu Medical, Sumin Investment Holdings (Jiangsu Private Investment Holdings)

Lepu Biotech 131

Lyfe Capital, Lilly Asia Ventures, Sequoia Capital Burning Rock Biotech 126

Boyu Capital, FountainVest Partners, Qiming Venture Partners Antengene 120

IDG Capital, Cenova Ventures, Matrix Partners, Source Code Capital, Vision Plus Capital (Yuanjing Capital) Weimai 100

IDG CapitalHangzhou KangSheng Health Consulting (Zhangshang Tangyi)

100

Source: EMPEA Data as of 31 December 2019.

China-Based VC Investors Participated In 35 Deals In Southeast Asia, 27 In India, And 6 In Africa

2019 VC Investment In China

China's Share Of Global VC Investment In 2019 (USD)

Cross Border Trend

Sequoia Capital

IDG Capital

Matrix Partners

Legend Capital

Qiming Venture Partners

2019 Most Active VC Investors

China Health Care In Focus

Spotlight On China

15b USD

595 Deals

A Substantial Decline From A High Of USD24.9b In 2018, But On Par With Previous Years

7Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

2019 Top Southeast Asia Deals By Size

Investor(s) Company Country Description Value (USDm)

GIC, East Ventures Traveloka Indonesia Marketplace: Travel aggregator 420

Sequoia Capital Zilingo SingaporeE-commerce: Platform for fashion and beauty supplies

226

General Atlantic, East Ventures, GGV Capital, UOB Venture Management

Ruangguru IndonesiaEdtech: Platform for grades 1 to 12 of all curricula in Indonesia

150

Mirae Asset Global Investments, Cathay Capital Private Equity, DST Partners, InterVest, Kejora Ventures, Mirae Asset Securities, Reinventure, Singtel Innov8, Square Peg Capital, Telkomsel Mitra Inovasi

FinAccel (Kredivo)

IndonesiaFintech: Retail credit platform for retail purchases

90

Gaorong Capital, eGarden Ventures, GSR Ventures, Pavilion Capital, Unicorn Venture Capital, Vision Plus Capital (Yuanjing Capital)

Advance.ai SingaporeFintech: Developing alternatives to existing credit scoring methods across APAC

80

Source: EMPEA Data as of 31 December 2019.

Big-Ticket Late-Stage Transactions Are Signaling The Evolution Of The Venture Ecosystem

*Later-Stage Rounds In Process For GoJek and Grab Were Not Included In This Data

Notable Healthtech Investments In Southeast Asia (2019)

Investor(s) Company Country Value (USDm)

Bill & Melinda Gates Foundation, Allianz X, Korea Investment Partners (KIP), Prudential Financial, Singtel Innov8, UOB Venture Management

HaloDoc Indonesia 65

Sequoia Capital, Openspace Ventures Biofourmis Singapore 35

Sequis Life, DAYLI Partners, Golden Gate Ventures, Hera Capital, Heritas Capital Management, SoftBank Ventures Asia

Alodokter Indonesia 33

SPARX Group MyanCare Telemedicine Myanmar Undisclosed

KK Fund Med247 Vietnam UndisclosedSource: EMPEA Data as of 31 December 2019.

East Ventures

500 Startups

Insignia Venture Partners

BEENEXT

Sequoia Capital

Companies That Cashed Up In 2019 Have An Advantage Approaching The 2020 Crisis

2.6b USD

256 Deals

Record Year For VC Investment (USD)

2019 VC Investment In Southeast Asia

2019 Most Active VC Investors

2020 Context

Southeast Asia Healthtech In Focus

235m USD 22 Deals 2019 VC Investment In Southeast Asia Healthtech

Increasing Internet Penetration Is Driving Demand For Virtual Health Care Across Populations Of Varying Socioeconomic Levels

Spotlight On Southeast Asia

8Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

2019 Top Latin America Deals By Size

Investor(s) Company Country Description Value (USDm)

Technology Crossover Ventures (TCV), Dragoneer Investment Group, DST Global, GIC, Ribbit Capital, Sequoia Capital, Tencent Holdings, Thrive Capital

Nubank BrazilFintech: Offers credit cards and other banking services to over 20 million clients in Latin America

400

SoftBank Group, Atomico, General Atlantic, SoftBank Group, Valor Capital Group

Gympass BrazilMarketplace: Fitness discovery platform connecting a global network of fitness facilities to companies and its employees

300

SoftBank Group, Dragoneer Investment Group, General Atlantic, Kaszek Ventures

QuintoAndar BrazilProptech: Proptech simplifying the rental of residential real estate

250

SoftBank Group, Amadeus Capital Partners, Banco Santander, SoftBank Group, Vostok Emerging Finance

Creditas BrazilFintech: Digital lending platform focused on secured lending

231

GGV Capital, Fifth Wall Ventures, SoftBank Group Loggi Brazil Logistics: Shipping logistics for e-commerce 150

* Source: EMPEA Data as of 31 December 2019.

Spotlight On Latin America

There Was A Notable Shift Towards Late-Stage Rounds, In-cluding Seven Of The Ten Largest Rounds On Record For Brazil

2019 VC Investment In Latin America

3.2b USD

242 Deals

2019 Was The Third Consecutive Year Of Record VC Investment

Despite Challenging Macroeconomic Conditions, VCs Deployed Record Dollars Including USD100m Rounds For Fintechs Konfio And Clip

Canary

KaszeK Ventures

monashees

Redpoint eventures

IGNIA

Valor Capital

2.3b USD

133 Deals

456m USD

52 Deals

Brazil Is The Market Leader

Record Year For VC Investment In Mexico

2019 Most Active VC Investors

*Later-Stage Rounds In Process For GoJek and Grab Were Not Included In This Data

Local VCs Take The Lead

Most Active Investors In Latin America Were All Local Fund Managers

In Contrast, Globally Based Investors Were Among The Most Active In All Other Emerging Markets In 2019

17 Of The 18 VC Transactions Over USD50m In Latin America Involved A Cross-Border Co-Investment, Signaling Global Cooperation To Support Dy-namic Startups With Expansion Capital That Was Not Historically Available

17 OF 18VC Transcations Over USD50m

9Trends In Global VC+Tech© EMPEA 2020. All rights reserved.

2019 Top Middle East Deals By Size

Investor(s) Company Country Description Value (USDm)

Saudi Technology Ventures, Alturki Holding, Endeavor Global, Iliad Partners, International Finance Corporation (IFC), Middle East Venture Partners (MEVP), Oman Technology Fund, Riyad Capital, Shorooq Investments

TruKKer UAELogistics: Trucking aggregator, from pick-ups to flatbeds

23

Mubadala Investment Company, Elm Venture Capital, Endeavor Global, Greyhound Capital, Point72 Ventures, Tech Invest Com

Bayzat UAEEnterprise Software: HRtech providing insurance and HR software solutions

16

Endeavor GlobalMawdoo3.com (Ujeeb)

Jordan E-commerce: Arabic media platform 10

Wamda Capital, 500 Startups, Endeavor Global Jamalon Jordan E-commerce: Platform for books 10

CITIC Capital Student.com UAE Marketplace: For international student housing 10

Source: EMPEA Data as of 31 December 2019.

2019 Top CEE & CIS Deals By Size

Investor(s) Company Country Description Value (USDm)

Piton Capital, ENERN, Goldman Sachs Private Equity Group (PEG), One Peak Partners

DocPlanner PolandHealthtech: Booking platform and management software provider for doctors

89

Runa Capital, Manta Ray, Prosus Ventures Brainly Poland Edtech: Edtech for middle school and high school students 30

Partech Partners, OpenOcean, Y Combinator Bitrise Hungary Enterprise Software: SaaS platform for mobile app development 20

Finch Capital TwistoCzech Republic

Fintech: For payments and consumer credit across the Czech Republic and Poland

16

Vostok New Ventures, AddVenture, Flashpoint Dostavista Russia Logistics: For same-day delivery in 10+ countries 15

Source: EMPEA Data as of 31 December 2019.

153m USD

45 Deals

2019 VC Investment In The Middle East

500 StartupsWamda CapitalRiyad Capital

Concentrated In Consumer Internet And E-commerce See Three Of The Top Five Deals

Dubai-Based Rideshare Giant Careem Was Acquired By Uber For USD3.1b, Providing An Exit To Investors Including Wamda Capital And Lumia Capital

2019 VC Investment In CEE & CIS

259m USD

39 Deals

Spotlight On Middle East

Spotlight On CEE & CIS

2019 Most Active VC Investors

Sectors Themes 2020 Update

Record Year For VC Investment In CEE & CIS

Poland On The Rise

Robust Engineering Talent And Low Tech Valuations Are Increasingly Attracting Local + Global VCs To CEE & CIS

Attracting International Capital

132m USD

5 Deals

Methodology

EMPEA’s venture capital (VC) investment dataset includes seed, early-stage, and late-stage investments with participation by blind-pool VC funds backed by institutional investors. Stand-alone investments by accelerators, incubators, angel investors, corporate or strategic investors (including SoftBank), and government-guidance funds are not included in current recording, but may be incorporated in subsequent releases. Growth-stage investments pri-marily involving PE fund managers (in VC-backed companies) and venture debt investments are included in EMPEA’s private equity and private credit investment statistics, respectively, and are excluded from the VC dataset. Investment totals reflect the total transaction value for each deal—including co-investments from institutional and strategic investors.

VC+Tech Newsletter

Sign Up for EMPEA’s VC+Tech Newsletter covering cross-border tech transactions and innovations with cross-border applications in a rapidly changing world. Geographies include Asia, Africa, Latin America, the Middle East, and other emerging markets for venture+tech investment.

Contact EMPEA

For additional data-related inquiries or questions, please contact EMPEA at research@empea.net or call +1 646 315 8942.

Disclaimer: This information is intended to provide an indication of industry activity based on the best information available from public and proprietary sources. EMPEA has taken measures to validate the information presented herein but cannot guarantee the ultimate accuracy or completeness of the data provided. EMPEA is not responsible for any decision made or action taken based on information drawn from this report.

Terms of Use: All material and underlying data contained within this workbook are the intellectual property of EMPEA. Any reference to the material must be properly cited with notation attributing EMPEA as the source.

empea.org © EMPEA. All rights reserved.