The number of existing internet users, which is projected to reach five billion by the end of 2023 and grow to eight billion by 2040, is expected to drive global tech stack expansion, according to a new report by 500 Global.

But in order to capture value creation, tech companies need to be able to understand internet users on a global level. The report detailed that as startup activities are becoming more globalised, with more than 100 countries having active startup ecosystems, so are unicorn activities, with more than 50 countries minting at least one unicorn.

Global revenues are an increasingly important lever for tech, the report stressed.

Called the Rise Report, in this report, 500 Global analysed third-party datasets to examine the potential venture funding gaps between emerging economies (“Rise Economies”) and the relatively mature startup ecosystems. It also seeks to understand “patterns of innovation and potential opportunity in the tech landscape.”

“Our overarching thesis is that by identifying what we believe is the relative delta between where an underpenetrated venture ecosystem is versus their potential, we may find alpha on a global scale,” said Courtney Powell, COO and Managing Partner at 500 Global in a press statement.

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“When we’re able to quantify the potential gaps in a venture ecosystem, we believe we are better equipped to collaborate with all stakeholders to accelerate global venture ecosystems and enable startups to drive economic growth in their economies and financial returns to our investors.”

Beyond US and China

In the report, 500 Global also stated that while many believe that the next decade will be defined by the US and China, it also believes in the role played by Rise 30—the 30 largest, fast-growing economies outside of the US and China that are expected to surpass the two countries by GDP.

India tops this list, while Indonesia is the only Southeast Asian country that made it to the top 10 list. Thailand, Vietnam, Singapore, and Malaysia were also in the top 20 list.

In the matter of the venture funding gap, in 2022, Singapore and Israel were the only two Rise Economies with Venture Penetration higher than that of the US.

Several key points that the report noted about the Rise 30 countries: They are growing faster, with younger population that are more social media savvy—and based in rural areas.

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