A new study from Endeavor Insight examines the career paths and backgrounds of top unicorn founders in the United States and emerging markets. Unicorns are privately-held startup companies valued at over $1B. The research analyzed 100 top US unicorn founders and 100 from emerging markets to uncover commonalities and differences. It found that over half of the US founders were immigrants, while the emerging market founders often migrated within their own region's countries. Notably, a minority of founders graduated from elite universities or worked at top employers. Among the founders, 50% brought experience from previous startup ventures, with an overall workforce tenure averaging ten years. Interestingly, emerging market unicorns reached the $1B mark an average of 6 months faster than their US counterparts, likely attributed to their solving more basic consumer needs in finance or transportation. The study ultimately aims to reveal the many potential roads to success as a founder and how paths may differ across geographies.

"There is no gilded, shimmering pathway through life for all founders of the highest-valued unicorns. There are many yellow brick roads to success, and this study has shown some clear differences between founders in emerging markets and more mature entrepreneurial ecosystems like the United States."

Endeavor

A recent survey by alternative asset manager, Coller Capital, found significant investor interest in increasing allocations to private credit markets. The $1.6 trillion industry has attracted capital this year thanks to its relatively senior position compared to equity, along with rising interest rates boosting yields on floating rate products. The survey showed 44% of private market investors intend to raise their stake in private credit, more than for other assets like infrastructure and real estate. This demand is especially high in Asia-Pacific, with 72% of investors there looking to deploy more capital into private credit. Investors are enticed by private credit’s lower risk profile despite potentially lower returns than private equity. However, margins are compressing from peaks last year due to more competition and a slowdown in M&A. The favorable rate environment and expected consolidation among fund managers show private credit’s strong prospects. With banks seen lagging private credit in lending to private equity, investors have significant optimism for private credit’s future.

Gulf Royals Top Bloomberg's Richest Families Ranking in 2023

https://www.bloomberg.com/features/2023-worlds-richest-families/?sref=l3FEFSDd

Written by:

Andrew Popp | Sr. Research Associate