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Draft:The Endeavor Multiplier Effect

Introduction

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The Endeavor Multiplier Effect™ refers to the economic and social impact generated by high-impact entrepreneurs supported by Endeavor. Through mentorship, investment, and networking, these entrepreneurs grow their businesses, create jobs, and inspire future generations of entrepreneurs, multiplying their effect across local and global economies. [1]

History

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In 1936, British economist John Maynard Keynes wrote in his book The General Theory of Employment Interest, and Money that "an initial rise in investment multiplies overall income by a large factor," talking about the investment multiplier idea that shows how an original investment creates a cascading effect throughout an economy. [2]

Endeavor’s Multiplier Effect™ combines this idea with founders in emerging markets. Since 1997, Endeavor, has worked to build entrepreneurial ecosystems around the world by identifying entrepreneurs with high potential to scale companies and pay it forward.[3]Endeavor focuses on this “high-impact” group, who often become role models, mentors and investors helping to create a self-sustaining network of entrepreneurship—this is known as the Endeavor's Multiplier Effect™.[4]

Impact

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Collectively, Endeavor Entrepreneurs have generated over $50 billion dollars in revenue and employ more than 4 million people worldwide, demonstrating the broad economic impact of Endeavor's Multiplier Effect™.[5]

Case Study: Patagon.com and MercadoLibre

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In the 1990s, Buenos Aires had limited entrepreneurial activity due to political and economic instability. Wences Casares founded Patagon.com, one of Argentina’s first online brokerage firms, despite initial resistance from local investors. Patagon was later sold to Banco Santander for $750 million. Around the same time, Marcos Galperin and Hernán Kazah launched MercadoLibre, which became the first Latin American company to be listed on the NASDAQ in 2007. [6]

These early ventures helped establish a support network for entrepreneurs in Buenos Aires, contributing to the city’s emergence as a key hub for tech entrepreneurship in Spanish-speaking Latin America. Their success influenced the creation of subsequent businesses, VC funds, and entrepreneurial initiatives. [3]

Case Study: Peak Games

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In 2010, the United States, Japan, the UK, Germany, and China were leaders of the tech sector based on revenue. Turkey was nowhere near.[7] In Istanbul in 2010, Sidar Sahin, Rina Onur Sirinoglu, Hakan Bas, and Safa Sofuoglu, founded Peak Games, a Turkey-based global mobile gaming company In 2011, Sidar Sahin was selected as an Endeavor Entrepreneur out of Endeavor Turkey. In 2020, Peak Games was acquired for $1.8 billion by Zynga, representing the first billion-dollar-plus exit for a startup out of Turkey. This acquisition signaled that big tech companies and returns can come from Turkey. [8]

Former Peak Games employees have gone on to create 65 different startups, referred to as the "Peak Mafia." One of Peak's foudners, Rina Onur Siringolu, was then selected as an Endeavor Entrepreneur out of Turkey with her second ventur Spyke Games. The entrepreneurial activity in Turkey catalyzed by Peak Games Multiplier Effect™. [9]

Case Study: Careem

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In 2012, Endeavor Entrepreneurs (selected in 2018) Magnus Olsson, Mudassir Sheikha, and Abdulla Elyas, founded Careem, the ride-hailing platform in the MENA region. In 2019, Careem became the Middle East's first unicorn after being acquired by Uber for $3.1 billion. [10]

Its founders Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas, who were selected as Endeavor Entrepreneurs in 2018, since led to the creation of over 120 startups by former employees. The founders themselves have invested in over 80 companies and mentored dozens of entrepreneurs across the region, jumpstarting the ecosystem through their Multiplier Effect™. [11]

Currently, Endeavor supports over 2,600 entrepreneurs across 45+ countries, who collectively generate $67B in revenue and have created 4.1M jobs—an impact amplified by the Multiplier Effect™️. [12]

See Also

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The Endeavor Multiplier Effect Website: www.endeavor.org/multipliereffect

Categories

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Entrepreneurship

Non-profit organizations

Economics

Venture Capital

Sources

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  1. ^ "Fireside Chat: The Multiplier Effect". London Tech Week 2024. Retrieved 2024-10-02.
  2. ^ Hale, Kori. "Endeavor's Impact Investing Multiplier Formula For Unicorn Success". Forbes. Retrieved 2024-11-15.
  3. ^ a b "Making Entrepreneurship Contagious". Knowledge at Wharton. Retrieved 2024-10-02.
  4. ^ Kene-Okafor, Tage (2024-07-25). "Endeavor CEO says long-term capital needs to be prioritized in emerging ecosystems". TechCrunch. Retrieved 2024-10-02.
  5. ^ "Endeavor Midwest Welcomes Justin Brown as its New Managing Director". TechPoint. August 27, 2024. Retrieved 2024-10-02.
  6. ^ "Mercado Libre Founders: It Takes Patience and Resilience". Stanford Graduate School of Business. 2024-04-30. Retrieved 2024-10-02.
  7. ^ "Countries ranked by IT revenue 2010". Statista. Retrieved 2024-11-15.
  8. ^ Lunden, Ingrid (2020-06-01). "Zynga acquires Turkey's Peak Games for $1.8B, after buying its card games studio for $100M in 2017". TechCrunch. Retrieved 2024-11-15.
  9. ^ Hale, Kori. "Endeavor's Impact Investing Multiplier Formula For Unicorn Success". Forbes. Retrieved 2024-11-15.
  10. ^ Dabbour, Karim (2020-01-03). "Uber Completes Acquisition of Careem". Uber Newsroom. Retrieved 2024-11-15.
  11. ^ Hale, Kori. "Endeavor's Impact Investing Multiplier Formula For Unicorn Success". Forbes. Retrieved 2024-11-15.
  12. ^ "Endeavor Brings the Multiplier Effect to London With The Launch of Its New Global Hub". Yahoo Finance. 10-2-2024. Retrieved 11-15-2024. {{cite web}}: Check date values in: |access-date= and |date= (help)
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