Copec WIND Ventures Fifth Annual Growth Survey

The survey gathers insights from venture capitalists (VCs) on global growth markets outside of North America and Western Europe and examines yearly shifts in investment perceptions.

Transcript

1. Fifth Annual Growth Markets Survey Annual Survey gathers insights from VCs on global growth markets. WWW.WINDVENTURES.VC WIND VENTURES
2. Summary of key survey findings: 1 VCs have defined ‘good startup expansion markets’ consistently over the past five years 2 There’s been a resurgence of VC perception of China as the best market for startup expansion outside of N. America and Europe, followed by Latin America, India, and Israel 3 For startups expanding to Latin America, VCs have consistently perceived the primary challenge as political, but have become more comfortable with all perceived challenges 4 VCs perceive AI as the most promising sector in Latin America, followed by fintech and energy-tech 5 VCs are most bullish on energy storage for intermittent renewables as a use case for generative AI that will drive increased energy investment 2
3. In general, VCs have defined ‘good startup expansion markets’ consistently for the past five years with market size and high rate of tech adoption as the leading qualifiers LARGE MARKET SIZE 60% 30% HIGH RATE OF TECH ADOPTION SUPPORTIVE LOCAL PARTNERS HIGH MOBILE ADOPTION LARGE AND GROWING MIDDLE CLASS LARGE URBAN POPULATION WHAT MARKET ATTRIBUTES DO YOU CONSIDER MOST IMPORTANT WHEN EXPANDING TO A NEW REGION? Higher score indicates greater association with these top attributes Noteworthy results presented 2020 2021 2022 2023 2024 3 38% 23% 16% 6% 16% 6% 36% 28% 15% 13% 8% 3% 47% 25% 13% 3% 13% 3% 57% 20% 13% 2% 2% 7% 43% 31% 14% 0% 9% 3% % RANKED TOP CHOICE
4. 37% 24% 10% 13% 24% 2020 2021 2022 2023 2024 There’s been a resurgence of VC perception of China as the best market for startup expansion outside of N. America and Europe, followed by Latin America, India, and Israel CHINA CHINA LATIN AMERICA INDIA ISRAEL SE ASIA AFRICA MIDDLE EAST JAPAN % RANKED TOP CHOICE 40% 40% 20% 20% WHAT REGION DO YOU VIEW AS THE BEST GROWTH MARKET FOR STARTUPS OUTSIDE OF NORTH AMERICA? Higher score indicates larger growth market Noteworthy results presented +84% 4 24% 21% 18% 15% 9% 9% 6% 0%
5. 4% 11% 15% 8% 16% 12% 26% 7% 21% 11% 45% 24% 10% 13% 39% There has been increasing positive VC sentiment for Asia, especially China, as to which regions contain the elements VCs use to define good startup expansion markets outside of N. America and W. Europe 2020 2021 2022 2023 2024 CHINA INDIA SOUTHEAST ASIA 50% 50% 25% 25% WHAT MARKETS DO YOU ASSOCIATE WITH THESE TOP ATTRIBUTES? Higher score indicates larger growth market Noteworthy results presented +202% +69% +430% 5 % RANKED TOP CHOICE
6. 66% 34% Most VCs remain optimistic about the success of innovation in Latin America ARE YOU MORE OPTIMISTIC ABOUT THE SUCCESS OF INNOVATION IN LATIN AMERICA THAN YOU WERE A YEAR AGO? % share of responses YES NO % RESPONSES 100% 50% +92% 6
7. 90% 54% 48% 95% 51% 39% 91% 58% 27% 89% 40% 36% 82% 44% 35% For startups expanding to Latin America, VCs have consistently perceived the primary challenge as political, but have become more comfortable with all perceived challenges POLITICAL % SELECTED 100% 0% 20% 40% 60% 80% WHAT DO YOU VIEW AS CHALLENGES FOR BUILDING A BUSINESS IN LATIN AMERICA? Noteworthy results presented 2020 2021 2022 2023 2024 ECONOMIC CULTURAL -5% -5% -7% 7
8. In terms of sectors, VCs are most bullish on AI in Latin America, and continue to be bullish on fintech and recognize the opportunity for energy-tech solutions AI 80% 40% FINTECH ENERGY FOODTECH MOBILITY CLIMATE TECH RETAIL WHAT DO YOU THINK IS THE NEXT BIG/HOT SECTOR FOR VC INVESTMENT IN LATIN AMERICA? Higher score indicates greater association Noteworthy results presented 2021 2022 2023 2024 8 % RANKED TOP CHOICE 0% 66% 20% 0% 11% 0% 6% 0% 42% 15% 6% 9% 18% 3% 0% 51% 15% 9% 2% 17% 6% 32% 26% 24% 9% 6% 3% 0%
9. VCs are most bullish on energy storage for intermittent renewables as a use case for generative AI that will drive increased energy investment SMR (SMALL NUCLEAR REACTOR) HYDROGEN ENERGY STORAGE FOR INTERMITTENT RENEWABLES 80% 40% DO YOU THINK THE INCREASE IN USAGE OF GEN AI WILL DRIVE INCREASED ENERGY INVESTMENT IN: Higher score indicates greater association Noteworthy results presented 9 39% 36% 79% % SELECTED
10. VCs are bullish on the increased pace of global venture capital investment in 2025 DECLINE INCREASE FLAT TO 2024 WHAT WILL HAPPEN WITH THE PACE OF GLOBAL VENTURE CAPITAL INVESTMENT IN 2025? Higher score indicates greater association Noteworthy results presented 10 % SELECTED 6% 69% 26% 80% 40%
11. VCs surveyed come from a diverse cross section of venture capital ARE YOU A: HOW MANY YEARS HAVE YOU BEEN INVESTING INTO STARTUPS PROFESSIONALLY? WHAT STAGE DO YOU INVEST? IN WHAT REGIONS DO YOU INVEST? WHAT TYPE OF INVESTOR ARE YOU? WHERE ARE YOU LOCATED? 80% 80% 80% 80% 80% 100% 100% 80% 60% 60% 60% 60% 60% 60% 40% 40% 40% 40% 40% 40% 20% 20% 20% 20% 20% 20% 0% 0% 0% 0% 0% 0% VC <2 YRS 2-5 YRS 5-10 YRS 10+ YRS SEED NORTH AMERICA NORTH AMERICA SECTOR FOCUSED CVC EARLY WESTERN EUROPE WESTERN EUROPE STAGE FOCUSED REGIONAL FOCUSED GROWTH UK UK LATIN AMERICA LATIN AMERICA MIDDLE EAST MIDDLE EAST GENERALIST 11 77% 23% 17% 63% 20% 54% 20% 3% 23% 20% 31% 29% 20% 97% 74% 60% 23% 26% 94% 3% 6% 0% 3%
12. Wind is the strategic venture capital group sponsored by COPEC with vast resources through Latin America WIND is the force within Copec’s corporate identity related to the sky and clouds that will drive it, and its partners, to new heights, opportunities and developments 12
13. Through 90 years, COPEC has emerged as one of Latin America’s most prestigious companies, consistently leading in innovation and maintaining a long term vision CONVENIENCE STORE TRANSPORTATION & INDUSTRIES ELECTROMOBILITY SERVICE STATION LUBRICANTS ENERGY AVIATION MARINES AS OF DECEMBER 2024 DOMINICAN REPUBLIC PANAMA COLOMBIA ECUADOR PERU CHILE COPEC exists to enhance the development and movement of people, companies, and the country ~$1B USD EBITDA +2,100 COPEC Voltex charging points +207M of loyalty transactions +36M Transactions in our COPEC app +1M Customer transaction (average day) 45.6% Market share lubricants 58.2% Market share liquid fuels 14
14. Copec WIND aims to lead LatAms mobility, energy and retail sectors’ transformations To do this well, we created the WIND Growth Platform which has 2 key capabilities across the US and Latin America to: Offer unfair access to Latin America; or Accelerate growth within Latin America Working on innovation and new developments Corporate Venture Capital in San Francisco, CA Building a strategic portfolio across energy, mobility, retail to learn, nurture and develop opportunities New Venture Studio in Santiago, Chile Ideating, building and partnering with big and small companies leveraging COPEC advantages 15
15. BRIAN WALSH HEAD, WIND VENTURES SAN FRANCISCO, CA INFO@WINDVENTURES.VC 16