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HomeEconomyKPMG says Venture Capital Markets in Central Asia Surpass Northern Regions

KPMG says Venture Capital Markets in Central Asia Surpass Northern Regions

Kazakhstan has emerged as the leader in the region in terms of venture capital volumes and development rates.

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According to KPMG, Kazakhstan has emerged as the leader in the region in terms of venture capital volumes and development rates.

According to a recent report, the venture capital market in the Central Asia and Caucasus (CCA) region is undergoing rapid expansion. Research involving RISE Research, EA Group Holding, BGlobal Ventures, Crunchbase, the Kazakhstan Ministry of Digital Development, Innovation and Aerospace Industry, and KPMG Central Asia and Caucasus shows that venture financing in the CCA region has increased 5.5 times, surpassing the pace of growth in the Nordics.

The report highlights a significant surge in venture capital investments in the region over the past six years, growing by 5.5 times. In 2023, this amount surpassed USD110 million.

Venture capital financing in the CCA region is expanding at a quicker pace compared to the Nordics, Europe (excluding CEE region), and the global venture capital market. Despite its rapid growth, in the medium term, the sector remains a small ecosystem with significant potential for expanding investment opportunities.

Kazakhstan has emerged as the leader in the region in terms of venture financing volumes and development rates. In the past six years, the volume of venture capital transactions in the country has surged by over sixfold, reaching upwards of USD 80 million in 2023. The average transaction size has grown 3.8 times over the same period, reaching USD 1 million in 2023. The sizes of these transactions are significantly influenced by international investors.

Uzbekistan has also experienced growth in the volume of venture capital investments. In 2023, venture capital transactions in the country surpassed USD 6 million, doubling the volume from the previous year. In 2023, the average size of transactions by venture capital funds was USD 204 thousand.

Georgia is also experiencing growth in venture investment volume. Last year, the total venture financing in the country exceeded USD 21.6 million, marking a four-time increase from 2022.

The total sum of venture capital financing in Azerbaijan stood at approximately USD 2.2 million, representing a decrease compared to the previous year. However, the average investment per funding round in the market is on the rise: it surged to USD 163 thousand in 2023.

In Kyrgyzstan, there has been a decrease in the total volume of venture capital financing. The total amount reached approximately USD 1.1 million.

The venture capital market of Tajikistan is still in its nascent stage. In 2023, the total volume of venture capital transactions reached $2 million.

Notes from the Editor: For the full report, click here.

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