For two decades, 'emerging markets' functioned as one line in an allocation model — a single risk premium applied across dozens of unrelated economies. That shorthand is breaking down. The committees we speak with ahead of the summit are increasingly separating three things that used to be bundled: currency and convertibility risk, sovereign and policy risk, and the operating quality of the underlying company.
Three risks, priced separately
Currency risk is now hedged or structured around, not simply accepted. Policy risk is assessed corridor by corridor rather than country by country. And operating risk is being judged on the same metrics an allocator would apply to a domestic company: retention, gross margin, capital efficiency and the durability of the distribution channel.
The practical consequence is that a payments company in Lagos and a payments company in São Paulo may end up with very different discount rates for reasons that have nothing to do with either being 'emerging'.
What this means for founders
Founders raising cross-border capital in 2026 should expect a diligence process that interrogates the operating model far more than the macro story. The macro narrative gets you the first meeting; unit economics and regulatory positioning get you the term sheet.
The Deal Room at EM Summit NYC is structured around exactly that conversation: pre-matched meetings where the allocator already understands the market thesis and wants to spend the time on the company.
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Insights are editorial briefing notes prepared for summit delegates. They are informational only and do not constitute investment, legal or tax advice.
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