{"id":19844,"date":"2025-03-20T05:30:00","date_gmt":"2025-03-20T05:30:00","guid":{"rendered":"https:\/\/reinvantage-dev.eonserver.com\/?p=19844"},"modified":"2025-03-20T05:30:00","modified_gmt":"2025-03-20T05:30:00","slug":"central-asias-start-ups-are-increasingly-prominent-in-european-markets","status":"publish","type":"post","link":"https:\/\/reinvantage-dev.eonserver.com\/?p=19844","title":{"rendered":"Central Asia’s start-ups are increasingly prominent in European markets"},"content":{"rendered":"\n

Central Asia\u2019s venture ecosystem is reaching a new level, positioning the region as an increasingly significant player on the global venture map<\/strong>.<\/p>\n\n\n\n

Central Asia\u2019s tech entrepreneurs are beginning to shine brighter, attracting a steady flow of investment and venturing well beyond regional markets. <\/p>\n\n\n\n

According to fresh research from RISE Research, backed by EA Group, MA7 Ventures, BGlobal Ventures (part of Kazakhstan\u2019s JSC Qazaqstan Investment Corporation), KPMG, and dealroom.co, venture investment into Central Asian start-ups reached 95 million US dollars in 2024\u2014a healthy seven per cent rise on the previous year.<\/p>\n\n\n\n

Furthermore, with the size of domestic markets limited, the region\u2019s start-ups are increasingly seeking their fortunes overseas. <\/p>\n\n\n\n

The UK is a top destination: more than 50 start-ups founded by Central Asian entrepreneurs already operate there. The US and UAE are also popular, home to more than 220 ventures from the region. Many retain their technical teams back home, blending international growth with local expertise.<\/p>\n\n\n\n

Kazakhstan the regional leader<\/h5>\n\n\n\n

Kazakhstan remains Central Asia’s powerhouse, capturing 74 per cent of the region\u2019s venture capital. Kazakh start-ups drew in 71 million US dollars in 2024, pushing their collective valuation to 710 million US dollars. <\/p>\n\n\n\n

Foreign capital accounts for over half (53 per cent) of these funds, flowing from a diverse set of investors hailing from Britain, America, the UAE, Saudi Arabia, Singapore, Estonia, and beyond. <\/p>\n\n\n\n

Deal sizes are swelling too: in 2024, 40 per cent ranged between 200,000 and 500,000 US dollars, sharply up from just a few years earlier.<\/p>\n\n\n\n

\u201cKazakhstan maintains its leadership position and remains the most active venture investment market in Central Asia,\u201d notes Ainur Zhanturina from RISE Research.<\/p>\n\n\n\n

Neighbouring Uzbekistan stands out for rapid growth. Investment there surged nearly threefold, to 17.5 million US dollars across 38 deals. Average deal size quadrupled, hitting 460,000 US dollars. <\/p>\n\n\n\n

Notably, local investors stepped up, providing over half the capital in 2024, while the share from international sources slipped slightly.<\/p>\n\n\n\n

\u201cThe growth of venture capital in Central Asia isn\u2019t just about more money flowing in\u2014it\u2019s about creating a sustainable innovation ecosystem,\u201d says Erik Aubakirov, CEO of EA Group. \u201cAttracting institutional investors and forging international partnerships will unlock the region\u2019s full potential.\u201d<\/p>\n\n\n\n

Kyrgyzstan is also gaining traction, attracting 1.7 million US dollars, an impressive 19 per cent annual growth since 2022. <\/p>\n\n\n\n

The country distinguishes itself with robust female entrepreneurship: women-founded start-ups accounted for nearly a third of deals and took home two-thirds of total investments. While accelerators dominate by number of investments, the lion\u2019s share of capital (66 per cent) still comes from venture funds abroad.<\/p>\n\n\n\n

Tajikistan, meanwhile, drew 4.6 million US dollars, propelled by Islamic fintech and AI-driven credit-scoring ventures. Tax incentives in Dushanbe\u2019s IT Park and a new five million US dollars venture fund helped spur the local ecosystem.<\/p>\n\n\n\n

The big winners<\/h5>\n\n\n\n

Across Central Asia, the big winners are clear: fintech, AI, education, and medtech. AI\u2019s influence runs deeper than official figures suggest, as many startups classified under traditional sectors rely heavily on artificial intelligence.<\/p>\n\n\n\n

\u201cCentral Asia\u2019s start-up market is gaining global attention, creating opportunities for international investors,\u201d says Murat Abdrakhmanov, founder of MA7 Ventures. \u201cAt MA7, we help foreign investors navigate Kazakhstan\u2019s ecosystem effectively.\u201d<\/p>\n\n\n\n

Regional venture capital is also getting a policy boost, with Kazakhstan launching a government-backed fund-of-funds set to reshape financing options from 2025 onwards. The trend towards government involvement complements private-sector initiatives, shaping a vibrant regional market.<\/p>\n\n\n\n

\u201cCentral Asia strengthens its position in innovation and venture capital,\u201d says Nurzhan Kadirkey, CEO of BGlobal Ventures. \u201cOur goal is a sustainable market that stimulates technological progress and global integration.\u201d<\/p>\n\n\n\n

Yet challenges remain, particularly a shortage of capital at later investment stages, prompting start-ups to seek greener pastures abroad. Despite this, optimism is strong.<\/p>\n\n\n\n

\u201cThe report confirms Central Asia\u2019s emerging status as a tech innovation hub,\u201d says Yelzhan Kushekbayev, partner at MA7 Ventures. \u201cInvestors are shaping the future of technology, accessing high-potential startups through exclusive syndicate deals.\u201d<\/p>\n\n\n\n

Analysts predict Central Asia\u2019s venture boom is just getting started, promising continued growth and deeper global integration in the coming years.<\/p>\n\n\n\n

One of the biggest questions remains the exit strategy for investors. Today, the most viable exit routes in the region are mergers and acquisitions (M&A) or selling stakes to large international funds.<\/p>\n\n\n\n

Nevertheless, “we are at a turning point,” says Murat Abdrakhmanov. “Central Asia\u2019s venture ecosystem is reaching a new level, positioning the region as an increasingly significant player on the global venture map. Now is the best time to enter this market.\u201d<\/p>\n\n\n\n

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Photo by Tim Broadbent<\/a> on Unsplash<\/a><\/em>.<\/p>\n\n\n\n

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At Emerging Europe, we use an integrated approach centred around market intelligence to help organisations understand trends and strategically position themselves for success.  <\/em><\/p>\n\n\n\n

Learn how our solutions can help you thrive in the region:<\/em><\/p>\n\n\n\n

Company and Services Overview<\/a> | Strategic Advantage<\/a>. <\/em><\/p>\n\n\n\n

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Central Asia\u2019s venture ecosystem is reaching a new level, positioning the region as an increasingly significant player on the global venture map. Central Asia\u2019s tech entrepreneurs [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":19845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[8326,8341,6320,8343,8344,6611,6650,8342,7082,6624,6621,6651,61,6780,6652],"class_list":["post-19844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-dealroom","tag-dushanbe-it-park","tag-featured","tag-global-ventures","tag-jsc-qazaqstan-investment-corporation","tag-kazakhstan","tag-kyrgyzstan","tag-ma7-ventures","tag-rise-research","tag-start-ups","tag-startups","tag-tajikistan","tag-technology-innovation","tag-turkmenistan","tag-uzbekistan"],"_links":{"self":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts\/19844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19844"}],"version-history":[{"count":0,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts\/19844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/media\/19845"}],"wp:attachment":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}