By Bitwave 
Hello and welcome back to Equity, a podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. This is our Wednesday show where we niche down to a single topic and dig deep.
The Cool Kids are Filling Out the Equity Listener Survey!
We want to hear from you! Long-time Equity listeners and TechCrunch readers should be familiar with LAVCA, an association of capital managers in the Latin America region. We have reported on its data numerous times. Well, it turns out that LAVCA is part of the larger Global Private Capital Association (GPCA), which keeps tabs on a host of markets that we’re working to cover more carefully as startup activity becomes an increasingly global phenomenon.
Interview with Cate Ambrose, CEO of GPCA
To cap off the second quarter, and to get our claws into what is going on around the world, we had Cate Ambrose, the CEO of the GPCA on the show to riff with us about Asia and Africa and Latin America and Central and Eastern Europe. Here’s what we wanted to find out:
- How wild was the 2021-era venture peak in less mature startup markets?
- How resilient are smaller startup ecosystems in a more conservative venture and macroeconomic environment?
- Are we seeing green shoots anywhere in the world? Or put another way, where is the rebound kicking off?
We closed with a short discussion on the role of government in startup markets and squeezed in an AI question because how could we not!
Takeaways from the Interview
- Global Venture Activity: The GPCA’s data shows that while venture activity has slowed down globally, there are still many regions where startups are thriving. Asia and Africa are showing particular promise.
- Resilience of Smaller Ecosystems: Smaller startup ecosystems in Latin America and Central and Eastern Europe are proving to be more resilient than expected, with a strong focus on innovation and local solutions.
- Green Shoots: We saw green shoots of recovery in regions like India, Indonesia, and South Africa. These countries have shown significant growth and potential for future expansion.
The Role of Government in Startup Markets
The conversation also touched on the role of government in supporting startup ecosystems. Cate Ambrose emphasized that governments play a crucial role in creating an environment conducive to innovation, entrepreneurship, and job creation. Governments can provide support through various means, including:
- Regulatory Frameworks: Establishing clear regulations that promote innovation and protect investors.
- Tax Incentives: Offering tax breaks or other incentives to encourage investment in startups.
- Training and Education: Providing resources for entrepreneurs to develop their skills and knowledge.
The Future of Venture Capital
As we look to the future, Cate Ambrose highlighted several key trends that will shape the venture capital landscape:
- Rise of Global Investors: We’re seeing a shift towards more global investors who are looking beyond traditional borders for opportunities.
- Increased Focus on ESG: There’s growing interest in Environmental, Social, and Governance (ESG) factors as investors seek to align their investments with social responsibility goals.
Conclusion
The conversation with Cate Ambrose provided valuable insights into the current state of venture capital globally. As we navigate this correction, it’s clear that smaller startup ecosystems will continue to play a significant role in driving innovation and growth.
Episode Transcripts and More
For episode transcripts and more, head to Equity’s Simplecast website. We’ll be dropping new episodes every Monday, Wednesday, and Friday at 7 a.m. PT, so subscribe to us on Apple Podcasts, Overcast, Spotify, and all the casts!
Stay Tuned for Our Next Episode
We have another interview coming your way this Friday, so stay tuned!