Venture investments in Central Asia grew to $96m in 2024 – a 7 per cent increase compared to 2023, according to RISE Research data.
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.
Central Asia startups in UAE
Ainur Zhanturina, of RISE Research, said: “Kazakhstan maintains its leadership position and remains the most active venture investment market in Central Asia, accounting for 74 per cent of the total investment volume in the region.
“In 2024, Kazakhstani startups attracted $71m, resulting in a total valuation of $710m”.
Of the total $71m in venture deals in Kazakhstan in 2024, 53 per cent 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, with 40 per cent of deals in 2024 ranging from $200,000 to $500,000.
This is significantly higher than in 2021, when 62 per cent of deals were less than $200,000.
Murat Abdrakhmanov, Venture Capitalist and Founder of MA7 Ventures, said: “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”.
Uzbekistan demonstrated the most impressive growth, as investment volume increased 2.7 times to reach $17.5m across 38 deals. The average deal size grew fourfold to $460,000.
In 2024, Uzbek startups attracted the majority of investments from local investors (over 52 per cent), while the share of investments from international investors decreased by 11 per cent compared to 2023.
Kyrgyzstan attracted $1.7m with an annual growth rate of 19 per cent 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 per cent), however, venture funds accounted for the main share of investment volume (66 per cent), most of which are located abroad.
Tajikistan attracted $4.6m 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 $5m venture fund.
Erik Aubakirov, CEO of EA Group, said: “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”.
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.
Analysts predict continued growth of the Central Asian venture market in the coming years, noting its high potential and gradual integration into the global ecosystem.
