Venture Capital - Kazakhstan

  • Kazakhstan
  • The country in Kazakhstan is expected to witness a Total Capital Raised in the Venture Capital market market reaching US$22.89m by 2024.
  • In the same year, the Later Stage is anticipated to dominate the market with a projected market volume of US$11.47m.
  • When compared globally, the United States is forecasted to lead in Capital Raised, generating US$136,600.0m in 2024.
  • Kazakhstan's Venture Capital market is gaining traction, with a growing number of tech startups attracting investment from both local and international investors.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

 
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Analyst Opinion

The Venture Capital market in Kazakhstan has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences:
Kazakhstan is witnessing a shift in customer preferences towards investment in innovative and high-growth potential startups. Investors are increasingly looking for opportunities to diversify their portfolios and generate higher returns. This has led to a growing demand for venture capital investments, as they offer the potential for substantial returns on investment.

Trends in the market:
One of the key trends in the Venture Capital market in Kazakhstan is the increasing number of startups and entrepreneurial activities. The country has seen a rise in the number of tech startups, particularly in sectors such as fintech, e-commerce, and software development. This trend is driven by a young and tech-savvy population, as well as government initiatives to promote entrepreneurship and innovation. Another trend in the market is the growing interest from international venture capital firms in investing in Kazakhstan. These firms recognize the country's potential as an emerging market with a favorable business environment and a growing startup ecosystem. The presence of international investors not only provides access to capital but also brings valuable expertise and networks to the local startup ecosystem.

Local special circumstances:
Kazakhstan's government has been actively promoting the development of the Venture Capital market in the country. It has implemented various initiatives and reforms to create a supportive ecosystem for startups and investors. These include the establishment of innovation clusters, the introduction of tax incentives for startups, and the provision of funding and support for early-stage ventures. These special circumstances have created a conducive environment for venture capital investments to thrive.

Underlying macroeconomic factors:
The growth of the Venture Capital market in Kazakhstan is also influenced by underlying macroeconomic factors. The country has experienced stable economic growth in recent years, driven by sectors such as oil and gas, mining, and agriculture. This economic stability provides a solid foundation for venture capital investments, as it reduces the risk and uncertainty associated with investing in emerging markets. Furthermore, Kazakhstan's strategic location as a gateway between Europe and Asia makes it an attractive investment destination. The country's membership in the Eurasian Economic Union and its participation in China's Belt and Road Initiative have further enhanced its position as a regional hub for trade and investment. These factors contribute to the overall growth and development of the Venture Capital market in Kazakhstan. In conclusion, the Venture Capital market in Kazakhstan is experiencing significant growth due to customer preferences for high-growth startups, market trends such as the rise of tech startups and international investor interest, local special circumstances including government support for entrepreneurship, and underlying macroeconomic factors such as stable economic growth and strategic location. These factors combined create a favorable environment for venture capital investments to flourish in Kazakhstan.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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