ASTANA — Kazakhstan has emerged as the leader in the Central Asia and Caucasus region in venture financing volumes and development rates, according to a recent large-scale study published on March 14 by RISE Research, EA Group Holding, BGlobal Ventures, Crunchbase, the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry, and KPMG Central Asia and Caucasus.
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Over the past six years, Kazakhstan has witnessed an over sixfold surge in venture capital transactions to more than $80 million in 2023.
Meanwhile, venture capital investments grew by 5.5 times within the Central Asia and Caucasus region, surpassing $110 million.
The average size of transactions has increased 3.8 times over the same period, reaching $1 million in 2023. This surge in transaction sizes is primarily attributed to the keen interest of international investors in local projects, who are making substantial investments in Kazakh startups. Local investors contribute to just 45% of the total investment volume.
Pre-seed (52%) and seed (38%) rounds dominate in venture capital transactions in Kazakhstan. Venture funds emerge as critical players in deal value, closely followed by business angels who invest more often, nurturing the next generation of successful startups within Kazakhstan and beyond.
EA Group Holding CEO Erik Aubakirov expressed pride in Kazakhstan’s leading role in the swiftly evolving venture capital sector. He emphasized the report’s significance in positioning Central Asia prominently on the global stage, drawing international attention and investment to catalyze a surge in innovation and entrepreneurship.
