Kazakhstan Dominates Central Asia’s Venture Capital Landscape in 2024

ASTANA, Kazakhstan — Kazakhstan solidified its status as the premier venture capital hub of Central Asia, garnering $71 million in investments in 2024, which represents 74% of the total regional venture deals, according to a report from RISE Research.

The report, which analyzed over 200 startups and 40 investors across Central Asia, noted that the total volume of venture capital in the region rose to $96 million in 2024, marking a 7% increase from the previous year. Since 2018, Kazakhstan has experienced a remarkable annual investment growth rate of 35%.

“The venture capital market in Central Asia, especially in Kazakhstan, is expanding rapidly. More startups are scaling internationally, and global investors recognize the region’s potential,” said Murat Abdrakhmanov, founder of MA7 Ventures.

In 2024, Kazakhstan recorded more than 80 venture deals and saw its number of active investors triple to over 60. The booming sectors attracting investments include artificial intelligence (AI), HealthTech, and Enterprise Software. The report emphasizes that the true impact of AI is even greater than indicated, as many startups utilize AI-driven solutions across various industries.

The average deal size is growing, a sign of Kazakhstan’s startups becoming increasingly attractive to investors. Simple Agreements for Future Equity (SAFE) dominate early-stage investments, comprising 63% of the total deals. Meanwhile, Kazakhstan’s 12 venture funds have managed a total of $157 million, with 32% already allocated to startups.

Notably, private investors, particularly high-net-worth individuals, contribute 44% of the venture capital, although upcoming government initiatives, such as a fund-of-funds model, are expected to alter funding dynamics in 2025.

Kazakhstan’s expansion is not limited to regional markets; many startups are seeking global opportunities in the United States, Europe, the Middle East, and Southeast Asia. This international ambition is driving higher valuations and deal sizes, positioning Kazakhstan towards launching its first unicorn startup.

The report was produced in collaboration with EA Group, MA7 Ventures, BGlobal Ventures, KPMG, and Dealroom.co.

Drilling down into the regional dynamics, Uzbekistan also experienced noteworthy investment growth, attracting $17.5 million across 38 deals, a nearly threefold increase. Local investors contributed over 52% of this funding, indicating a shift in investment strategy.

Kyrgyzstan registered $1.7 million in venture capital in 2024, reflecting a 19% annual growth since 2022. Remarkably, women-founded startups accounted for nearly a third of deals and 66% of total investments in the country.

Tajikistan attracted $4.6 million, buoyed by Islamic fintech and AI credit-scoring ventures, aided by local incentives.

Erik Aubakirov, CEO of EA Group, summed up the regional situation: “The growth of venture capital in Central Asia isn’t just about increasing amounts of money; it’s about building a sustainable innovation ecosystem. Attracting institutional investors and fostering international partnerships is crucial for realizing the full potential of this region.”

Amid these positive trends, challenges persist, particularly regarding access to capital at later stages, prompting regional startups to look abroad. Nonetheless, optimism remains high. As noted by Yelzhan Kushekbayev of MA7 Ventures, “Investors are shaping the future of technology through exclusive syndrome deals that facilitate access to high-potential startups. There has never been a better time to enter the market.”

As the ecosystem continues to evolve, the anticipated government-supported fund-of-funds set to launch in 2025 is expected to reshape financing options, further enhancing the region’s appeal to investors.