Reflect Ventures invests in early stage companies in emerging markets. These investments have big advantages: ? Emerging markets have a higher cost of capital, so higher return to investors ? There are fewer investors for early stage companies in emerging markets, but as they get larger, large global investors get interested.?This drives up valuation multiples, giving early stage investors higher returns. ? Emerging markets are following the path of developed markets and China.?Not identical - they are going mobile first - but the broad outline is the same.?So we can pick winners more easily. ? Fast development in these countries - from hand written bus tickets to electronic or open outcry trucking marketplaces under a tree to smart phone apps in just a few years - enables fast growth in business and valuation and gives early movers big advantages, again making it easier to pick winners ? Big, commanding heights of large economies are suddenly up for grabs.?Meta is amazing, but getting farm produce from farm to store has far higher financial return than staving off first world ennui for a few hours and the proportionate returns to investors will be far higher. ? There is a huge impact from almost anything you do in emerging markets that generates economic value.?Crypto economics are fascinating, but trading artificially scarce ape JPGs has far less social value than reducing neighborhood store supply chain costs in Africa, Latin America, or Pakistan. The argument against emerging markets today is timing and capital availability.?It is scary to run into a burning building while everyone else is running out. We believe that now is the best time in years to invest in emerging markets. ? Valuations are down and terms are more investor friendly ? Investors are being pickier - only the best companies are closing rounds ? It is harder for competitors to close a round after one company in a market gets funded.?This gives many companies breathing room to build big leads. ? Costs are low in developing markets.?You can give a small to medium sized emerging markets start up a two year runway for less than the one year cost of a single good Silicon Valley engineer. That said, you need connections, experience, and knowledge to succeed in these markets.?You need to be able to get inside information about a founder, his company and any competitors, and to understand the dynamics of the markets they operate in.?That is how syndicators like Reflect Ventures with deep emerging markets experience and connections add value. Contact us if you are an investor interested in these opportunities. #venturecapital #startups? #angelinvesting? #emergingmarkets #emergingmarketsventurecapital #emergingmarketsangelinvesting #syndicators #investmentsyndicates Image credit: Emerging markets by?Nick Youngson?CC BY-SA 3.0?Pix4free
