A recent study by RISE Research, in collaboration with EA Group, BGlobal Ventures, Crunchbase, the Ministry of Digital Development, Innovations, and Aerospace Industry of Kazakhstan, and KPMG Caucasus and Central Asia, reveals a dynamic growth in the venture market in Central Asia and the Caucasus.
The research indicates a 5.5-fold increase in venture financing volume in the region over the past five years, surpassing $110 million in deals in 2023. Despite this growth, the ecosystem remains relatively small, highlighting significant potential for additional investments. One of the obstacles to development is the lack of reliable data in the region, a gap that RISE Research aims to fill by providing investors and the government with quality and reliable data for sustainable growth, as emphasized by RISE Research founder Aynur Zhanturina.
In 2023, the total volume of venture financing in Kyrgyzstan reached around $1.1 million, slightly lower than the previous year's figures. The majority of deals in Kyrgyzstan focus on the pre-seed round, with startups like Mystory and WEDEVX attracting investments at this stage, showing promising prospects in industries like EdTech, Retail SaaS, and FinTech.
Crunchbase data indicates a growth in startup investments in Central Asia in recent years, particularly in early-stage financing. With a growing local venture capital ecosystem, there is anticipation for further progress in companies attracting investments at early stages in 2024 and beyond, according to Gene Tyr, Senior Data Editor at Crunchbase News.
Experts note that Kyrgyzstan has become an exporter of IT specialists with high potential for developing the domestic startup market. Despite a rise in qualified technical professionals in the country, limited domestic market and funding shortages lead these talents to pursue projects abroad, sometimes unrelated to Kyrgyzstan.
