Amid intensifying global technological competition, the development of Kazakhstan’s own venture ecosystem is no longer merely a matter of industry prestige. Today, it is a fundamental issue of national security, economic sovereignty, and overcoming the “middle-income trap.”

In 2024, the total volume of venture financing in Kazakhstan reached $71 million, accounting for 74% of the entire Central Asian market.

The results of 2025 demonstrated explosive growth: the total amount of investment raised by Kazakhstani startups tripled, reaching $209 million, while the total capitalization of funded startups amounted to $2.16 billion.

In 2025, funds with QIC participation financed 15 new projects, while successful exits from companies such as Aitas KZ, generating KZT 5.2 billion in proceeds, allowed liquidity to be redirected into new instruments.

Another key step was the launch of the institutional fund of funds, Alem Ventures Fund LP, managed by Alem Capital Management, formerly QVG. Initiated by the Government of the Republic of Kazakhstan, the fund has a target capitalization of $1 billion. At the end of 2025, it completed its first closing at $115 million, with QIC, Freedom Holding Corp., Astana Hub, and private capital acting as anchor investors.

Government capital invested through the Mother Fund helped build South Korea’s venture market to approximately $8.7 billion in 2024. Through the Global Fund program, 74 international funds were created, supporting more than 650 Korean startups, including future unicorns.

venture market size in South Korea in 2024

$8,7B

Most of the funds were later bought out by private investors, allowing the government to exit its positions at a profit.

growth of Israel’s venture market over 9 years

Yozma

from $58M to $3,3B

in government investment helped attract an additional $2.2 billion in private capital. This model became the foundation for the launch of Elevate NZ, a $300 million fund designed to close the Series A/B financing gap.

in government investment

NZVIF

$173M

Volume of investments in AI projects in Kazakhstan in 2025

2/ Creative Economy:

$

M

Increase in AI investments over the year

х growth

Kazakhstani AI startups are already entering international markets

sectors

companies

growth

regions

Despite institutional progress, Kazakhstan’s innovation model still faces fundamental barriers deeply rooted in the structure of the financial market.

The market already has fund managers with experience, deal flow, and a strong pipeline, but their capacity is limited by a narrow base of institutional investors.

Public procurement, Astana Hub, and the registry of domestic software help create demand for local solutions. However, startups often lack the resources to go through long pilot projects in the public sector, industry, and SMEs.

Kazakhstan has significant capital in the banking and pension sectors, but it is still barely involved in financing venture funds.

Large industrial companies remain weakly involved in CVC mechanisms. This limits the development of deeptech solutions for manufacturing, energy, mining and metals, and other sectors.

Banks, insurance companies, and other institutional investors should be allowed to allocate a limited portion of their own non-deposit capital into qualified venture funds.

Creative industries, like science, require professional investment, expertise, and protection of intellectual property.

Large industrial companies should be given the opportunity to allocate part of their R&D funds into corporate venture funds to finance deeptech startups.

The Science Fund can become an important instrument for financing deeptech, spin-off projects, and the commercialization of scientific developments.

The state should act not as a direct administrator of innovation, but as an institutional investor that channels capital through professional fund managers.