Venture Capital, and the Brandt Line

by

Tomás Denecken

Jun 27, 2023

Emerging markets are stoking the global economic engine, and venture capitalists are gearing up for the ride. Enter the Brandt Line theory – our trusted roadmap to discover untapped potentials in these markets, with a keen focus on the flourishing sectors of fintech, foodtech, and logistics.

Picture a world map. The Brandt Line theory splits it into two halves. North of the line – places like the US, Europe, and Japan – are the established economic powerhouses. South of the line – Latin America, Africa, and South East Asia – are the rising stars (fun fact: coincidentally  – or not 😉 – this line is precisely on the 30 North latitude, as you can imagine, an inspiration for the 30N Ventures’ name).

The theory uses measurable indices like GDP per capita, literacy rates, life expectancy, and internet penetration to delineate this divide.

Now, let’s dive into the data. World Bank reveals that the southern economies like India, Brazil, and Mexico are accelerating at rates of 6.5%, 2.7%, and 2.2%, respectively, outpacing the world’s average growth rate of 2.5%. The icing on the cake is the staggering increase in internet users, which saw an additional 300 million in just a year, as per a Datareportal report in 2023.

It’s this confluence of enhanced connectivity and economic growth that’s fuelling the rapid expansion of fintech, foodtech, and retail-tech (e-commerce, marketplaces, and logistics) sectors. Accenture reports fintech investments in emerging markets hit a staggering $4.5 billion in 2022. Statista predicts that the global foodtech market volume will reach $300 billion by 2025, with a significant chunk contributed by emerging markets. Moreover, Grand View Research estimates that the EM’s logistics space will surge to $130.17 billion by 2025, growing at an impressive CAGR of 12.2%.

Despite these prospects, venture capital flow from the North to these dynamic Southern markets remains suboptimal. As per the Global Private Equity Report, only 15% of available venture capital is reaching these markets. This opens up a lucrative window for those ready to plunge into these sectors, especially venture capital funds looking for high-yielding M&A opportunities.

The Brandt Line theory, apart from underscoring the divide, also points us to the future. We can anticipate a country’s trajectory by monitoring parameters like economic growth, demographic shifts, and internet penetration. The United Nations forecasts that by 2050, India, Nigeria, and Mexico will add 300 million, 200 million, and 20 million people to their working-age populations. Combine that with a burgeoning digital user base and the escalating tech sectors, and we are staring at a massive untapped market.

However, Southern investments have inherent risks – political instability, corruption, and regulatory hurdles. The Brandt Line, though, can help investors navigate these challenges and make informed decisions.

The Brandt Line is more than a mere geographical divide it's a strategic blueprint for venture capitalists and M&A enthusiasts.

With this guide, a sense of adventure, and insights into the rapidly evolving digital landscape, we're not just speculating on these markets - we're placing our bets on their future, thereby influencing the trajectory of global economic growth.


Venture Capital, and the Brandt Line

by

Tomás Denecken

Jun 27, 2023

Emerging markets are stoking the global economic engine, and venture capitalists are gearing up for the ride. Enter the Brandt Line theory – our trusted roadmap to discover untapped potentials in these markets, with a keen focus on the flourishing sectors of fintech, foodtech, and logistics.

Picture a world map. The Brandt Line theory splits it into two halves. North of the line – places like the US, Europe, and Japan – are the established economic powerhouses. South of the line – Latin America, Africa, and South East Asia – are the rising stars (fun fact: coincidentally  – or not 😉 – this line is precisely on the 30 North latitude, as you can imagine, an inspiration for the 30N Ventures’ name).

The theory uses measurable indices like GDP per capita, literacy rates, life expectancy, and internet penetration to delineate this divide.

Now, let’s dive into the data. World Bank reveals that the southern economies like India, Brazil, and Mexico are accelerating at rates of 6.5%, 2.7%, and 2.2%, respectively, outpacing the world’s average growth rate of 2.5%. The icing on the cake is the staggering increase in internet users, which saw an additional 300 million in just a year, as per a Datareportal report in 2023.

It’s this confluence of enhanced connectivity and economic growth that’s fuelling the rapid expansion of fintech, foodtech, and retail-tech (e-commerce, marketplaces, and logistics) sectors. Accenture reports fintech investments in emerging markets hit a staggering $4.5 billion in 2022. Statista predicts that the global foodtech market volume will reach $300 billion by 2025, with a significant chunk contributed by emerging markets. Moreover, Grand View Research estimates that the EM’s logistics space will surge to $130.17 billion by 2025, growing at an impressive CAGR of 12.2%.

Despite these prospects, venture capital flow from the North to these dynamic Southern markets remains suboptimal. As per the Global Private Equity Report, only 15% of available venture capital is reaching these markets. This opens up a lucrative window for those ready to plunge into these sectors, especially venture capital funds looking for high-yielding M&A opportunities.

The Brandt Line theory, apart from underscoring the divide, also points us to the future. We can anticipate a country’s trajectory by monitoring parameters like economic growth, demographic shifts, and internet penetration. The United Nations forecasts that by 2050, India, Nigeria, and Mexico will add 300 million, 200 million, and 20 million people to their working-age populations. Combine that with a burgeoning digital user base and the escalating tech sectors, and we are staring at a massive untapped market.

However, Southern investments have inherent risks – political instability, corruption, and regulatory hurdles. The Brandt Line, though, can help investors navigate these challenges and make informed decisions.

The Brandt Line is more than a mere geographical divide it's a strategic blueprint for venture capitalists and M&A enthusiasts.

With this guide, a sense of adventure, and insights into the rapidly evolving digital landscape, we're not just speculating on these markets - we're placing our bets on their future, thereby influencing the trajectory of global economic growth.


Venture Capital, and the Brandt Line

by

Tomás Denecken

Jun 27, 2023

Emerging markets are stoking the global economic engine, and venture capitalists are gearing up for the ride. Enter the Brandt Line theory – our trusted roadmap to discover untapped potentials in these markets, with a keen focus on the flourishing sectors of fintech, foodtech, and logistics.

Picture a world map. The Brandt Line theory splits it into two halves. North of the line – places like the US, Europe, and Japan – are the established economic powerhouses. South of the line – Latin America, Africa, and South East Asia – are the rising stars (fun fact: coincidentally  – or not 😉 – this line is precisely on the 30 North latitude, as you can imagine, an inspiration for the 30N Ventures’ name).

The theory uses measurable indices like GDP per capita, literacy rates, life expectancy, and internet penetration to delineate this divide.

Now, let’s dive into the data. World Bank reveals that the southern economies like India, Brazil, and Mexico are accelerating at rates of 6.5%, 2.7%, and 2.2%, respectively, outpacing the world’s average growth rate of 2.5%. The icing on the cake is the staggering increase in internet users, which saw an additional 300 million in just a year, as per a Datareportal report in 2023.

It’s this confluence of enhanced connectivity and economic growth that’s fuelling the rapid expansion of fintech, foodtech, and retail-tech (e-commerce, marketplaces, and logistics) sectors. Accenture reports fintech investments in emerging markets hit a staggering $4.5 billion in 2022. Statista predicts that the global foodtech market volume will reach $300 billion by 2025, with a significant chunk contributed by emerging markets. Moreover, Grand View Research estimates that the EM’s logistics space will surge to $130.17 billion by 2025, growing at an impressive CAGR of 12.2%.

Despite these prospects, venture capital flow from the North to these dynamic Southern markets remains suboptimal. As per the Global Private Equity Report, only 15% of available venture capital is reaching these markets. This opens up a lucrative window for those ready to plunge into these sectors, especially venture capital funds looking for high-yielding M&A opportunities.

The Brandt Line theory, apart from underscoring the divide, also points us to the future. We can anticipate a country’s trajectory by monitoring parameters like economic growth, demographic shifts, and internet penetration. The United Nations forecasts that by 2050, India, Nigeria, and Mexico will add 300 million, 200 million, and 20 million people to their working-age populations. Combine that with a burgeoning digital user base and the escalating tech sectors, and we are staring at a massive untapped market.

However, Southern investments have inherent risks – political instability, corruption, and regulatory hurdles. The Brandt Line, though, can help investors navigate these challenges and make informed decisions.

The Brandt Line is more than a mere geographical divide it's a strategic blueprint for venture capitalists and M&A enthusiasts.

With this guide, a sense of adventure, and insights into the rapidly evolving digital landscape, we're not just speculating on these markets - we're placing our bets on their future, thereby influencing the trajectory of global economic growth.


Venture Capital, and the Brandt Line

by

Tomás Denecken

Jun 27, 2023

Emerging markets are stoking the global economic engine, and venture capitalists are gearing up for the ride. Enter the Brandt Line theory – our trusted roadmap to discover untapped potentials in these markets, with a keen focus on the flourishing sectors of fintech, foodtech, and logistics.

Picture a world map. The Brandt Line theory splits it into two halves. North of the line – places like the US, Europe, and Japan – are the established economic powerhouses. South of the line – Latin America, Africa, and South East Asia – are the rising stars (fun fact: coincidentally  – or not 😉 – this line is precisely on the 30 North latitude, as you can imagine, an inspiration for the 30N Ventures’ name).

The theory uses measurable indices like GDP per capita, literacy rates, life expectancy, and internet penetration to delineate this divide.

Now, let’s dive into the data. World Bank reveals that the southern economies like India, Brazil, and Mexico are accelerating at rates of 6.5%, 2.7%, and 2.2%, respectively, outpacing the world’s average growth rate of 2.5%. The icing on the cake is the staggering increase in internet users, which saw an additional 300 million in just a year, as per a Datareportal report in 2023.

It’s this confluence of enhanced connectivity and economic growth that’s fuelling the rapid expansion of fintech, foodtech, and retail-tech (e-commerce, marketplaces, and logistics) sectors. Accenture reports fintech investments in emerging markets hit a staggering $4.5 billion in 2022. Statista predicts that the global foodtech market volume will reach $300 billion by 2025, with a significant chunk contributed by emerging markets. Moreover, Grand View Research estimates that the EM’s logistics space will surge to $130.17 billion by 2025, growing at an impressive CAGR of 12.2%.

Despite these prospects, venture capital flow from the North to these dynamic Southern markets remains suboptimal. As per the Global Private Equity Report, only 15% of available venture capital is reaching these markets. This opens up a lucrative window for those ready to plunge into these sectors, especially venture capital funds looking for high-yielding M&A opportunities.

The Brandt Line theory, apart from underscoring the divide, also points us to the future. We can anticipate a country’s trajectory by monitoring parameters like economic growth, demographic shifts, and internet penetration. The United Nations forecasts that by 2050, India, Nigeria, and Mexico will add 300 million, 200 million, and 20 million people to their working-age populations. Combine that with a burgeoning digital user base and the escalating tech sectors, and we are staring at a massive untapped market.

However, Southern investments have inherent risks – political instability, corruption, and regulatory hurdles. The Brandt Line, though, can help investors navigate these challenges and make informed decisions.

The Brandt Line is more than a mere geographical divide it's a strategic blueprint for venture capitalists and M&A enthusiasts.

With this guide, a sense of adventure, and insights into the rapidly evolving digital landscape, we're not just speculating on these markets - we're placing our bets on their future, thereby influencing the trajectory of global economic growth.


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