In collaboration with EA Group, MA7 Ventures, BGlobal Ventures, KPMG, and dealroom.co, RISE Research has conducted a comprehensive research on Central Asia’s venture capital market. According to the findings, venture investments in Central Asia grew to $96 million in 2024 – a 7% increase compared to 2023. With limited local markets, startups from the region are increasingly expanding internationally, adopting global scaling models.
More than 20 startups founded by entrepreneurs from Central Asia are already operating in the UAE, making the country one of the key destinations for regional entrepreneurs looking to scale.
“Kazakhstan maintains its leadership position and remains the most active venture investment market in Central Asia, accounting for 74% of the total investment volume in the region. In 2024, Kazakhstani startups attracted $71 million, resulting in a total valuation of $710 million,” shares Ainur Zhanturina from RISE Research.
Of the total $71 million in venture deals in Kazakhstan in 2024, 53% came from foreign investors. Foreign investments came from the UAE, as well as the USA, UK, Saudi Arabia, Singapore, and other countries. The average deal size also increased: 40% of deals in 2024 ranged from $200,000 to $500,000, significantly higher than in 2021, when 62% of deals were less than $200,000.
“Central Asia’s startup market is gaining global attention with increasing opportunities for international investors. At MA7, we not only invest in local startups but also offer market insights and guidance to help foreign investors navigate Kazakhstan’s venture ecosystem effectively”, said Murat Abdrakhmanov, Venture Capitalist, Founder of MA7 Ventures.
Uzbekistan demonstrated the most impressive growth: investment volume increased 2.7 times to reach $17.5 million across 38 deals, while the average deal size grew fourfold to $460,000. In 2024, Uzbekistani startups attracted the majority of investments from local investors (over 52%), while the share of investments from international investors decreased by 11% compared to 2023.
Kyrgyzstan attracted $1.7 million with an annual growth rate of 19% since 2022. The country stands out for its high level of female entrepreneur involvement – nearly a third of deals are related to women-founded projects, and such startups attracted two-thirds of the total investment volume. Accelerators and hubs are the leaders in Kyrgyzstan’s venture market by number of investments made (over 50%), however, venture funds accounted for the main share of investment volume (66%), most of which are located abroad.
Tajikistan attracted $4.6 million in 2024, focusing on Islamic fintech and AI-powered credit scoring models. The development of the venture market was facilitated by tax incentives for startups in IT Park Dushanbe and the launch of a $5 million venture fund.
“The growth of venture capital in Central Asia is not just an increase in investments, but the creation of a sustainable innovation ecosystem. To unlock the region’s full potential, it is necessary to attract institutional investors and develop international partnerships,” says Erik Aubakirov, CEO of EA Group.
Among the key sectors attracting venture investments in the region in 2024, artificial intelligence, fintech, and educational and medical technologies are leading. Moreover, the influence of artificial intelligence is even higher, as many AI startups are classified by their primary industries rather than the AI sector as such.
“Central Asia strengthens ground in innovations and venture capital. BGlobal Ventures enhances quality growth of startups through funding, educational programs and development of the venture investment community, connecting key ecosystem players with regional and international partners. Our priority is to build a sustainable market that stimulates technological progress and global integration”, said Nurzhan Kadirkey, CEO, BGlobal Ventures.
With growing funding volumes and the development of investment infrastructure, Central Asia is becoming an important venture capital hub. Regional investors are increasingly shaping the startup ecosystem, strategically directing technology development. The region’s venture market is also influenced by programs created with government support. For instance, Kazakhstan has already announced a fund of funds, which could significantly change funding sources as early as 2025.
“The report confirms Central Asia’s emerging status as a tech innovation hub. At MA7, investors cast their votes with capital, shaping the future of technology while gaining access to high-potential startups through syndicate deals that enable participation in exclusive investment opportunities”, said Yelzhan Kushekbayev, Angel Investor and partner at MA7 Ventures.
However, despite the positive dynamics, there is a shortage of capital in later funding stages. This explains the growing trend of regional startups expanding to countries with more developed venture financing ecosystems.
Nevertheless, analysts predict the continued growth of the Central Asian venture market in the coming years, noting its high potential and gradual integration into the global ecosystem.
The full version of the research is available at the link.
