Global Technology Innovation & Early Stage Cross-border Investing
Anik Bose, BGV General Partner shares his perspective on global technology innovation and the implications for early stage cross-border venture investing. Silicon Valley remains the center of the technology universe with an established major technology ecosystem with companies such as Google, Intel, Cisco, Salesforce, Facebook, Oracle and Palo Alto Networks anchored in the area. While the cross-fertilization of ideas and innovation created by such an ecosystem is difficult to replicate, innovation continues to emerge from other parts of the world such as Israel, China, UK, France, Japan, India and Korea. A few key data points:
- Israel has successfully established itself as “Startup Nation” – Ranked first in the world for innovative capacity by the IMD Global Competitiveness Yearbook 2014 and third for innovation globally out of 148 economies by the WEF Global Competitiveness Yearbook 2014–2015. The region has established an enviable track record of technology innovation in the sectors of cybersecurity, cloud and mobility.
- China’s tech savvy consumers are propelling advances in Cloud adoption, IoT and autotech and are rapidly emerging as the only region outside Silicon Valley that has the benefits of scale and the aspirations to be a significant player on the global technology landscape. Ecosystem players like Alibaba, Tencent etc are playing a key role in fertilizing technology innovation in the region.
- UK – London has a higher density of startups than any other city in the world with Fintech deals experiencing a five year compounded annual growth rate of 74%
- France has the second largest VC ecosystem in Europe (US$1.2 billion in 2013) and has produced strong innovative startups in the areas of Analytics, IoT, Adtech and Drone technologies
- India has launched several initiatives to promote the growth of the technology sector including Digital India, a $2Bn technology catalyst fund, and an ambitious plan to build 100 smart cities, which will push the innovation paradigm for technology companies.
- Japan is setting new standards in Robotics with a focus on integration of the artificial intelligence sensors, software and big data.
- Korea is fortifying its technology economy with promising technologies such as 5G telecommunications, realistic media and content platform devices