85% of the world’s population or 6 billion people live in emerging markets. Thus growth for Silicon Valley’s tech giants is often synonymous with building for emerging markets. Building products for the next billion requires a deep understanding of local cultures. And in recent years, the local tech companies’ innate understanding of its people has enabled them to outcompete the wealthier, Silicon Valley tech giants. The local versions of Uber such as Didi in China, Go-jek and Grab in Southeast Asia, and Careem in the Middle East, have got Uber beat. We’re seeing similar trends in e-commerce, fintech, gig marketplaces, classifieds and other industries.

On this week’s episode of our Emerging Markets Startups podcast, we’re joined by Chris Schroeder, venture investor and co-founder of the Next Billion Ventures, board member of several startups, and author of Startup Rising, The Entrepreneurial Revolution Remaking the Middle East. We talk about how localizing products is the ultimate competitive advantage and examples of emerging market startups that are already leapfrogging Silicon Valley.