New venture fund aims to transform Kazakhstan into a tech investment hub

ASTANA: Kazakhstan’s government has announced plans to establish a venture capital fund of funds next year, aiming to secure $1 billion in investments to support regional start-ups and advanced technologies, reported Bloomberg.

As Central Asia’s largest oil producer, Kazakhstan has witnessed the emergence of home-grown fintech companies, including US-listed Kaspi.kz, while actively working to reduce its reliance on energy revenue. President Kassym-Jomart Tokayev has committed to decreasing the state’s involvement in the economy and attracting $150 billion in foreign investment by the end of his term in 2029.

The Qazaqstan Venture Group intends to invest in top global and local venture funds focused on financing cutting-edge technologies, especially in areas like artificial intelligence, as stated by the Minister of Digital Development, Innovation, and Aerospace. “We want to encourage start-ups in fintech, medtech, and AI from the region to establish themselves in Kazakhstan,” said Zhaslan Madiyev in an interview. He emphasized that the fund would support the most promising start-ups in their journey to become unicorns.

Kazakhstan plans to start attracting investments in the first half of 2025, with the national development holding Baiterek contributing $30 million. Madiyev noted that private investors have expressed preliminary interest in investing over $90 million into the fund.

The allocation strategy includes investing 30% of the pooled capital in Central Asia and the Caucasus, while the remainder will target the US and other international markets. Additionally, Kazakhstan is in negotiations with Middle Eastern funds and global financial institutions to secure investment for this new initiative, according to the minister.