Abstract: This paper explores the critical role of venture capital in innovation and entrepreneurship,as well as its impact on global transformation and technology diffusion. Venture capital serves as a vital source of funding for startups,particularly when traditional financial instruments fail to meet the financing needs of innovative enterprises,significantly enhancing their innovative output. However,venture capital also has limitations,including a narrow investment focus and susceptibility to technological cyclicality,which create financing gaps in foundational technology sectors and emerging markets. Furthermore,this paper analyzes the rise of emerging markets within the global venture capital and entrepreneurship wave,with a particular emphasis on Chinas important role. Data indicate that the share of venture capital invested in emerging markets as a share of the total global transaction volume has significantly increased,with financial performance exceeding that of public markets,illustrating a trend towards multipolarity in global venture capital. Additionally,the rise of innovation and entrepreneurship in China is notably pronounced,with its technological and business models exerting significant spillover effects on other emerging markets,thereby accelerating their innovation and entrepreneurial processes.Finally,this paper presents policy recommendations to promote venture capital, emphasizing the need to cultivate the venture capital ecosystem and patient capital that supports innovation and entrepreneurship. The significance of venture capital in the rise of emerging markets is substantial. On the one hand,emerging markets are at a critical stage of economic transformation and upgrading,presenting tremendous potential market demand. On the other hand,the level of development of their financial systems is relatively low,making it more challenging for small and medium-sized innovative enterprises to secure financing compared to developed countries. Consequently,with its forward-looking investment capabilities,support for startups,and ability to nurture innovation ecosystems,venture capital is increasingly recognized as an important financial tool in emerging markets. As the significance of emerging markets in the global economy continues to rise,the role of venture capital will become even more crucial,and its value in promoting economic growth,driving industrial upgrading,and stimulating innovation will be further realized.