Venture Capital (VC) is a relatively recent financing tool in emerging markets (EM), but it is attracting an increasing amount of capital, due to the growth and perceived development potential of the private sector and the structural limitations to growth financing observed in many regions. This paper focuses on a microanalysis of the evolving business models of venture capital firms in emerging and frontier economies. It concentrates on understanding how the funds are operating on the ground, the challenges faced, and some of the initiatives launched by selected countries to attract more VC activity.