ALMATY – A shift is underway in the Caspian region. Innovation is no longer seen as a buzzword but a homegrown necessity. During a high-level session on corporates, startups, and the future of innovation in the Caspian Region at INMerge Almaty 2025 on June 17, regional voices mapped out both the momentum gained and the hurdles still slowing progress toward a fully connected ecosystem.
Moderated by the Founder and CEO of Silkroad Innovation Hub Asset Abdualiyev, the panel brought together key decision-makers from Kazakhstan and Azerbaijan to dissect the region’s journey from fragmented efforts to deeper partnerships.
(l-R) Asset Abdualiyev, Renat Bekturov, Jalal Gasimov, Askar Zhambakin, Didar Karimsakov. Photo credit: PASHA Holding
Innovation can’t thrive without cultural and regulatory shifts
Governor of the Astana International Financial Centre (AIFC) Renat Bekturov opened with cautious optimism. While more startups and corporates are choosing to set up shop in Astana, he underscored the regulatory fragmentation slowing regional integration. “Collaboration is happening. But we want to see more, especially in fintech, because innovation can democratize finance and allocate capital more effectively,” Bekturov said.
CEO of Azerbaijan’s PASHA Holding Gasimov reiterated the holding’s position that every attempt is worthwhile, whether it succeeds or not. Photo credit: PASHA Holding
Yet navigating the Caspian innovation landscape is far from straightforward. Startups expanding across borders must contend with both written regulations and what Bekturov bluntly called “unwritten rules,” the informal practices that still govern many decisions in emerging markets. “You have to be very creative and come up with ideas that disrupt existing markets,” he added, pointing to crypto and tokenization as areas where the breakthrough might occur.
CEO of Azerbaijan’s PASHA Holding Jalal Gasimov focused on a dual strategy of internal and external innovation that governs the holding’s activities. Internally, the company runs an incubator-like platform open to all employees, a rare move for such a dominant market player. “When things are going well, companies ask, ‘Why should we innovate?’ That mindset has to change from the top. Even if ideas don’t grow into businesses, the learning is what matters,” Gasimov said.
He reiterated the holding’s position that every attempt is worthwhile, whether it succeeds or not. Gasimov shared that one such employee-led idea became InMerge, now one of the region’s most recognizable innovation events. Externally, PASHA holding also scouts for global startup solutions to solve specific business challenges. These startups receive funding for 6–12 months, with an emphasis on rapid testing. “If it works, it’s a good story. If it doesn’t work, it’s okay. For us, it’s not lost money. For us, it’s a learning and that’s what we continue to promote,” he said.
Breaking the Catch-22 of venture building in emerging markets
Abdualiyev, speaking to the Chairman of the Management Board at Qazaqstan Investment Corporation (QIC) Didar Karimsakov, called QIC “the fund of funds” since it is under Baiterek Holding and oversees over $2 billion in assets under management and has been instrumental in channeling capital into global venture markets. According to Abdualiyev, QIC invested in the prominent venture capital firm 500 Global, a move that helped spotlight Central Asia, and particularly Kazakhstan, as a serious player in tech innovation among Silicon Valley circles.
Governor of the AIFC Bekturov underscored the regulatory fragmentation slowing regional integration.
“It was a smart, strategic investment,” said Abdualiyev, adding that it brought valuable visibility and sparked interest in Kazakh startups.
But he also raised a structural concern many emerging markets face: the lack of experienced general partners (GPs) to manage local venture funds. “Funds of funds require GPs to have a track record. But in a market where no Venture Capital (VC) ecosystem previously existed, where exactly are these track records supposed to come from?” he asked, adding that it creates a “catch-22” situation.
Karimsakov acknowledged the paradox and outlined QIC’s strategy to break the cycle.
“We are actively working on bringing international expertise to Kazakhstan and creating new pathways for local talent,” he said.
Alongside global partnerships, QIC has made direct investments in more than 40 startups worth over $6 million in capital, with an additional $10 million raised from co-investors. He emphasized that this hands-on engagement with early-stage companies is part of a broader effort to cultivate a homegrown venture capital environment.
He added that, to that end, QIC is launching its own in-house venture fund this year, with backing conversations already underway with institutional partners, such as the European Bank for Reconstruction and Development and the International Finance Corporation.
“Yes, they ask the same question—‘What’s the GP’s track record?’” Karimsakov admitted, adding that the institution is addressing this through co-investments, advisory structures, and gradual capacity building.
Representing Kazakhstan’s telecom sector, CEO of Kcell Askar Zhambakin, emphasized the importance of partnerships, even when a company has the internal muscle to build solutions in-house. “We partner with startups and private third-party developers because we don’t always have the flexibility to deliver what’s needed, especially for consumers,” he said.
Zhambakin highlighted the use of 5G-powered autonomous vehicles in mining fields, which has not only increased efficiency but also “almost eliminated the risk of injury” in hazardous industrial zones. “This is where new tech becomes more than just cool—it becomes life-saving,” he noted.
The talent trap: why brilliance alone isn’t enough
In one of the session’s most introspective moments, moderator Abdualiyev put a hard question to the panel: “The Caspian region’s greatest wealth may no longer be oil—it’s talent. But while talent is everywhere, opportunity is not. What’s holding us back?”
Bekturov highlighted the lack of capital markets as a key issue. Without functioning exit mechanisms, such as IPOs or strong venture capital networks, even the most promising entrepreneurs hit a wall. “In our part of the world, IPOs are limited. Often, your only exit is through corporates,” Bekturov said. “We have to develop proper capital markets, from venture capital to private equity to public listings, so that founders have real options,” he added.
He also emphasized that while financial capital exists globally in abundance, investors often see the region through the lens of perceived risk. “We need to communicate with our own regulators and governments. Stability and consistency matter,” he noted.
Gasimov offered a cultural perspective. According to him, there is a mismatch between the prevailing style of education systems in the region and what the future demands. “We teach knowledge but the world now rewards soft and communication skills,” he said.
Gasimov reiterated that problem-solving, asking the right questions, handling feedback, and showing vulnerability are not yet part of the region’s curriculum. He called for a cultural shift toward embracing failure and encouraging entrepreneurship among young people. In many societies across the region, he noted, millionaires are still viewed with suspicion, and success stories often go untold. He believes that, without visible role models and open conversations about failure as a stepping stone to success, it becomes difficult for the next generation to dream big.
Karimsakov agreed, stressing that financial education and infrastructure must grow in tandem. He also added that Kazakhstan needs to think of itself as not a standalone market.
“It’s time to think in terms of ‘Central Asia Tech’ as a single, connected ecosystem,” he added.
The session made one thing clear: corporate leaders in the region are not only open to innovation, they’re ready to embrace it with humility. As Abdualiyev noted in conclusion, many are willing to admit they don’t have all the answers and are looking to startups as key partners in solving complex challenges. That openness to vulnerability is a cultural shift in itself, and a necessary one.
Still, the Caspian innovation ecosystem remains a work in progress. The talent is undeniable. The appetite for collaboration is growing. But to fully unlock the region’s potential, institutions, capital markets, and social norms must evolve. Building a thriving, innovation-driven society will require not just bold entrepreneurs but also bold regulators, educators, and investors willing to back them.
The event is organized by Azerbaijan’s largest investment group PASHA Holding, Astana Hub, and with the support of the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry.
