Recent findings from a comprehensive study conducted by RISE Research, in collaboration with partners EA Group and BGlobal Ventures, along with Crunchbase and governmental entities, shed light on the thriving venture capital landscape in Kazakhstan and the broader Central Asia and Caucasus region, Astana hub reported.
Research shows that the venture capital market in Kazakhstan has experienced a remarkable rise, with the volume of venture funding increasing more than fivefold over the past five years. The total amount of venture deals in the region surpassed $110 mn in 2023.
Ainur Zhanturina, founder of RISE Research, highlighted the substantial growth in venture capital funding and underscored the importance of reliable data in fostering sustainable growth. The study aims to bridge the gap in data availability, providing valuable insights for investors and governmental agencies alike.
Ersultan Ermanov, Director of the Information Technology Industry Development Department, emphasized the pivotal role of government support and infrastructure development in nurturing the venture capital market in Kazakhstan. Initiatives such as the Astana Hub and regional innovation hubs have contributed to decentralizing innovation activity and providing essential resources and mentorship to entrepreneurs.
Kazakhstan emerged as a leader in venture capital transactions, with the amount exceeding $80 mn in 2023. This milestone reflects Kazakhstan's growing stature as a hub for innovation and entrepreneurship. Erik Aubakirov, CEO of the EA Group holding, hailed the study as a milestone for the region's venture ecosystem, noting its potential to attract international investors and elevate local startups on the global stage.
The study also revealed insights into the distribution of venture capital across different stages and industries. Pre-seed and seed rounds dominated the investment landscape, with significant interest in FinTech, AI, HealthTech, and PropTech startups. Despite the dominance of venture funds in terms of transaction volume, business angels played a crucial role in funding early-stage ventures.
Abay Absamet, CEO of BGlobal Ventures, emphasized the region's attractiveness for investment due to its high growth dynamics. However, he highlighted the need for a greater presence of active business angels and venture funds to meet the growing demand for investments.
Despite the impressive growth in venture capital activity, the study revealed a significant reliance on international investors by Kazakh startups. While Kazakh venture investors lead in the number of transactions, international players contribute a substantial portion of investment volume, highlighting the need for further development of the local investor ecosystem.
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