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Central Asia’s rising stars

The region's venture ecosystem is becoming a significant global player

March 20, 2025

4 min read

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March 20, 2025

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4 min read

Photo by Tim Broadbent on Unsplash.

Central Asia’s tech entrepreneurs are beginning to shine brighter, attracting a steady flow of investment and venturing well beyond regional markets.

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

Furthermore, with the size of domestic markets limited, the region’s start-ups are increasingly seeking their fortunes overseas.

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.

Kazakhstan the regional leader

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

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.

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.

“Kazakhstan maintains its leadership position and remains the most active venture investment market in Central Asia,” notes Ainur Zhanturina from RISE Research.

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.

Notably, local investors stepped up, providing over half the capital in 2024, while the share from international sources slipped slightly.

“The growth of venture capital in Central Asia isn’t just about more money flowing in—it’s about creating a sustainable innovation ecosystem,” says Erik Aubakirov, CEO of EA Group. “Attracting institutional investors and forging international partnerships will unlock the region’s full potential.”

Kyrgyzstan is also gaining traction, attracting 1.7 million US dollars, an impressive 19 per cent annual growth since 2022.

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’s share of capital (66 per cent) still comes from venture funds abroad.

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

The big winners

Across Central Asia, the big winners are clear: fintech, AI, education, and medtech. AI’s influence runs deeper than official figures suggest, as many startups classified under traditional sectors rely heavily on artificial intelligence.

“Central Asia’s start-up market is gaining global attention, creating opportunities for international investors,” says Murat Abdrakhmanov, founder of MA7 Ventures. “At MA7, we help foreign investors navigate Kazakhstan’s ecosystem effectively.”

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.

“Central Asia strengthens its position in innovation and venture capital,” says Nurzhan Kadirkey, CEO of BGlobal Ventures. “Our goal is a sustainable market that stimulates technological progress and global integration.”

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.

“The report confirms Central Asia’s emerging status as a tech innovation hub,” says Yelzhan Kushekbayev, partner at MA7 Ventures. “Investors are shaping the future of technology, accessing high-potential startups through exclusive syndicate deals.”

Analysts predict Central Asia’s venture boom is just getting started, promising continued growth and deeper global integration in the coming years.

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.

Nevertheless, “we are at a turning point,” says Murat Abdrakhmanov. “Central Asia’s 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.”

Photo by Tim Broadbent on Unsplash.

Marek Grzegorczyk

Marek Grzegorczyk

Marek Grzegorczyk is an analyst at Reinvantage.

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