In partnership with
Kazakhstan Venture Capital
Market Overview
Market research prepared by MOST in partnership with White Hill Capital and Tech Hub AIFC
Research Methodology

The market for VC transactions, both in Kazakhstan and globally, is known for its limited access to information. In contrast, more developed markets have established structures in place for monitoring, consolidating information, and determining appropriate methodology. Unfortunately, such work is not currently performed in Kazakhstan. As a result, in the face of limited access to information, we have had to utilize various data sources and consolidate them for subsequent monitoring and updating purposes. As the data sources were not always reliable, to test hypotheses and to obtain the most accurate information interviews were held with industry experts and market players that have extensive work experience in Kazakhstan.

The closed nature and lack of transparency of the venture capital market in Kazakhstan have resulted in a significant number of transactions going unnoticed, and this not only hinders an understanding of the industry (and not to mention complicates our research), but also reduces the appeal of the industry for its players, including potential investors and businesspersons. Many venture capital investors prefer to keep their investments and activities private, which makes it difficult to gain a comprehensive understanding of the market.

We have gathered all publicly available data on the venture capital market in Kazakhstan for the period of 2018 to 2022. However, industry experts indicate that this data only represents ~60% of the total market activity. As a result, we have adjusted the total market volume and the number of deals accordingly. However, the analysis presented in the report is based only on the observable publicly available deals. While it may not represent the entire market volume, it still provides a valuable sample for analysis and allows us to identify market trends and gain a general understanding of the market.

The Deals List is based on information published in media reports, and open databases, as well as on proprietary information from MOST Holding, White Hill Capital, and Tech Hub AIFC. In any other instance, we contacted a newsmaker, or source, for confirmation.

We did not perform a detailed check of all data contained in the VC Deal List and in this report and cannot be held liable for its absolute accuracy or completeness. An analysis of alternative sources/ databases of transactions may lead to results other than those presented in this research.

In calculating the volumes and dynamics of Kazakhstan’s VC market, we only include venture investments in companies that operate predominantly in Kazakhstan. Deals involving Kazakh investors and investment recipients that are focused on markets outside Kazakhstan were not considered in this report as contributors to the overall value of Kazakhstan’s VC market.

The Deal List does not include M&As, PE deals, exits, loans, grants, and investments in the market infrastructure.

The deal date shown is the date when a deal was announced in the media, or company reports, unless otherwise specified.
The total amount of observables deals for 2018-2022 equals 87 mln USD with 175 deals.
However, according to industry experts, the observable deals show only ~60% of the actual market volume, indicating a significant amount of deals that are not reported or disclosed publicly

The pre-seed and seed stages dominate the majority of deals, indicating a strong emphasis on early-stage funding and support for start-up ventures in their initial stages of development
Marketplaces/E-commerce and Fintech are the key market sectors due to rising internet penetration and the relatively young population in the country

The average venture deal size in Kazakhstan is small compared to other countries, which indicates a high number of early-stage deals.

However, from the last year, the market is shifting towards a focus on quality over quantity, with investors becoming more selective in their deal-making and more capital becoming available for fewer, but more promising startups

Business angels and venture funds are a key source of capital. 45% of VC deals amount were funded by business angels.
There are ~15 active public business angels and ~200 non-public investors “behind the scenes”

The market is becoming more mature and sophisticated, with an increasing number of successful M&As and a growing number of corporate investors
The small regional market in Kazakhstan, particularly in the consumer products sector, leads to a brain drain of IT professionals seeking larger markets and funding opportunities abroad to establish and grow their startups

The number of international acceleration programs in Kazakhstan is on the rise, while domestic programs are maturing and expanding to other Central Asian countries
The rise of venture funds and investment clubs in Kazakhstan, both domestic and international, indicates growing interest and potential for investing in the country's startup ecosystem

Some selected deals
The development of venture capital requires an integrated approach and simultaneous development of all components of the ecosystem. With the proper development of infrastructure in the country, including a favorable legislative framework, an increase in tax benefits, a reduction in restrictions on investment strategies of banks, pension funds, and insurance companies, an increase in the number of co-investment and guarantee schemes, the creation of a reliable environment for "exit" strategies, as well as increasing the professional competencies of market participants, Kazakhstan will be able to not only attract a stable inflow of investments but also create prerequisites for sustainable economic development in the coming years.

· Industry experts have a positive outlook for the future of the VC market in Kazakhstan. They believe that the market has significant potential for growth and development in the coming years.

· However, currently, Kazakhstan is witnessing trends that indicate that Kazakhstan’s VC market is still immature:
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