Successful entrepreneurs do more than passively inspire the next group of founders, they actively enable the next generation to overcome the barriers entrepreneurial success. This is why Linda Rottenberg, who co-founded Endeavor, a platform that has supported more than 2,600 founders globally, created the Endeavor Multiplier Effect™, which allows early successful founders to fertilize what will later become thriving unicorn-breeding grounds and multiply entrepreneurial success by a large factor.
The Breakdown You Need To Know:
British economist John Maynard Keynes introduced the investment multiplier idea as a groundbreaking economic concept that shows how an original investment creates a cascading effect throughout an economy. This fundamental principle demonstrates that “an initial rise in investment multiplies overall income by a large factor,” he wrote in his 1936 book The General Theory of Employment, Interest, and Money.
By merging Keynes’ initial investment multiplier idea with founders in emerging markets, Endeavor’s Multiplier Effect™ is pushing entrepreneurial success in a new direction. Currently Endeavor supports 79 unicorn companies, valued at $1 billion or more globally. Endeavor Catalyst Fund, the investment arm of the organization, has invested in 58 unicorns hailing from more than 20 countries. Yet, this is only half the story. These founders also mentor entrepreneurs, invest in their home countries, and inspire hundreds of spin-off companies led by their employees.
“Without the mindset of paying it forward, you might have one, two, or three unicorns, but that’s it. Today, LatAm is home to almost 50 unicorns, many of which trace their start to earlier Endeavor Multipliers — the most successful founders who pay their success forward by mentoring, investing in, and training the next generation, Rottenberg said to CultureBanx.”
Multiplying Emerging Market Entrepreneurs:
Emerging market economies showcase unique characteristics and greater effects through the Endeavor Multiplier Effect™. Endeavor’s investment scenarios in emerging markets demonstrate the multiplier’s effectiveness as it “acts as a catalyst for private sector development”. A mutually beneficial relationship emerges between public and private investments that increases the overall economic effect beyond the original investment value.
In the case of Peak Games, founded by Sidar Sahin in Istanbul, Turkey alongside Rina Onur and others in 2010 was acquired for $1.8 billion by Zynga in 2020. Endeavor’s Multiplier Effect™ is clearly showcased here as Peak Games became a catalyst for new ventures.
Former Peak Games employees have gone on to create 65 different startups, often referred to as the “Peak Mafia”. Onur was one of the co-founders and was selected as an Endeavor Entrepreneur during its 100th International Selection Panel in Dublin, Ireland, now leading Spyke Games.
Intentional Investments:
Crunchbase found that global startup investment in 2023 reached $285 billion, this is why Endeavor has been leaning into emerging markets and entrepreneurs who may be easily overlooked. “Endeavor identifies, supports, and co-invests in leading entrepreneurs in places like Brazil, Argentina, Colombia, Egypt, Türkiye, Greece, Nigeria, and Vietnam— markets that, frankly, if you come from a Silicon Valley investor mindset, you wouldn’t think competitive returns are possible,” said Rottenberg.
Multifaceted emerging markets generate
over 59% of global GDP, according to World Bank data and entrepreneurs play a significant role in that. Specifically, this shift demonstrates how investment patterns in innovative founders help to shape these economies. Endeavor’s Multiplier Effect™ helps us understand how original investments flowing through these areas creates cascading effects to substantially impact entrepreneurial growth.
Developing Domestic Success:
Domestic linkages multiply the impact of foreign direct investment (FDI) throughout the economy. Research shows that “for every job directly created in non-resource FDI, approximately four additional jobs are created, split evenly between the formal and informal sectors”. These business connections create powerful spillover effects that enable technology transfer and knowledge sharing across sectors.
A clear example of this started back in 2019, when Careem became the Middle East’s first unicorn after being acquired by Uber for $3.1 billion. Its founders Mudassir Sheikha, Magnus Olsson, and Abdulla Elyas, who were Endeavor entrepreneurs, their multiplier impact has since led to the creation of over 120 startups by former employees. Careem’s founders have invested in 80 more companies while mentoring dozens of entrepreneurs across the region.
Real-world examples from emerging markets reveal the multiplier’s impressive results and power to drive change. Endeavor’s pay it forward process goes beyond immediate economic gains for entrepreneurs, they are creating lasting effects by improving absorptive capacity and human capital development. Investors and entrepreneurs that apply these principles effectively are setting themselves up for long-term success, backed by strong collaborations and smart investment distribution.
What’s Next:
Endeavor’s Catalyst Fund has raised $500 million to date with its 50/50 shared-profits model that drives proceeds back into Endeavor both globally and locally, to scale the ecosystem-building efforts, make the nonprofit self-sustaining, and continue its multiplier effect. In 2025, it’s targeting over $300 million for its fifth fund. Additionally, the Endeavor platform and ethos is operating in 45 countries, with plans to bring it to 100 countries by 2035.