Linda Rottenberg, co-founder and CEO of Endeavor, has been at the forefront of fostering entrepreneurial success across emerging markets through her organization’s innovative Endeavor Multiplier Effect™. This concept reflects the idea that successful entrepreneurs do not just inspire others through their accomplishments but actively mentor and support the next generation, thus multiplying opportunities for others and catalyzing the growth of ecosystems that can lead to the emergence of ‘unicorns’—companies valued at over $1 billion. Endeavor has thus far supported more than 2,600 founders globally and has played a role in the growth of 79 unicorns worldwide, demonstrating the power of collective entrepreneurial success.
The Endeavor Multiplier Effect™ is rooted in economic principles articulated by British economist John Maynard Keynes. His investment multiplier theory highlights how initial investments can generate cascading positive effects throughout the economy. Endeavor has utilized this framework, particularly within emerging markets, to inspire a new wave of entrepreneurial initiatives. By promoting an environment where established entrepreneurs help nurture newer ones, Endeavor amplifies the overall economic impact, demonstrating that a few initial successes can create a larger ecosystem of thriving businesses.
Emerging markets present unique opportunities that differ significantly from established economies. Endeavor’s work is particularly vital in these regions, where it facilitates the growth of entrepreneurship as a means of economic development. The examples of companies like Peak Games illustrate how original founders can catalyze further entrepreneurial activity, as seen with the spin-offs from Peak Games’ former employees, collectively known as the “Peak Mafia.” This phenomenon highlights the broader impact of successful ventures in stimulating innovation and growth in their local economies.
Investment strategies by organizations like Endeavor have increasingly targeted emerging markets that may otherwise be overlooked by traditional investors. In 2023, global startup investments reached $285 billion, with Endeavor focusing its resources on countries like Brazil, Argentina, and Nigeria, which collectively represent a significant portion of global GDP. The approach not only uncovers hidden potential in these regions but also tests the notion that competitive returns are achievable outside of tech hubs like Silicon Valley. Endeavor’s work supports the idea that the cascading effects of investment can resurrect economies and bolster entrepreneurial ecosystems in places previously viewed as non-competitive.
The advantages of domestic linkages in amplifying foreign direct investment (FDI) cannot be overstated. Research indicates that FDI can lead to the creation of additional jobs and foster technology transfer, enhancing overall economic cohesion. A notable example is Careem in the Middle East, which became the region’s first unicorn upon being acquired by Uber. The company’s founders, who also mentored various new startups and invested in others, exemplify how the Endeavor Multiplier Effect™ can redefine the entrepreneurial landscape, leading to the creation of over 120 startups and significant knowledge sharing in the region, ultimately elevating the tech ecosystem.
Looking ahead, Endeavor’s Catalyst Fund aims to leverage its successful model, with a goal of raising over $300 million for its fifth fund by 2025. The fund employs a 50/50 shared-profits model that reinvests proceeds to fuel global and local ecosystem-building efforts. As the organization continues to expand its reach—from 45 countries to a target of 100 by 2035—Rottenberg’s vision of fostering an interconnected web of entrepreneurial support and shared success operates under the belief that the true power of entrepreneurship lies in its potential to influence and uplift entire communities, creating a ripple effect of prosperity and innovation.
