The Global South represents $40 trillion in combined GDP and 85% of the world’s population, yet captures less than 20% of global venture capital. At Disrupt Asia 2025’s “Gateway to the Global South” panel, cross-border investment specialists examined why traditional investment approaches fail in emerging markets and how new frameworks can unlock sustainable capital flows. The discussion moved beyond typical infrastructure challenges to address fundamental gaps in trust-building, regulatory navigation, and cultural understanding that determine investment success or failure in markets from Sri Lanka to Southeast Asia.
The panel’s key insight centres on shifting from transactional investment models to relationship-based frameworks that acknowledge the unique dynamics of emerging ecosystems. Rather than applying Western venture capital templates, successful cross-border investment requires systematic bridge-building through what panellists termed “capital diplomacy”—combining market intelligence, authentic relationship development, and operational support to overcome information asymmetries and regulatory complexity. This approach recognises that emerging markets offer not just arbitrage opportunities but fundamentally different innovation models that require adapted investment strategies and longer-term commitment to ecosystem development.
Insights for European Investors: The Global South’s investment opportunity requires moving beyond traditional due diligence to embrace relationship-based frameworks that navigate cultural, regulatory, and operational complexity whilst capturing unique innovation dynamics unavailable in developed markets.
