Murat Abdrakhmanov, an IT entrepreneur and business angel from Kazakhstan, is leading the charge in promoting the country’s thriving startup ecosystem to venture investors from the U.S. and other Western countries. Kazakhstan, known for its uranium mining and oil exports, is also an advanced digital state with a burgeoning fintech hub and numerous promising startups. Abdrakhmanov highlights how fintech has played a pivotal role in driving the development of Kazakhstan’s startup ecosystem, with Kaspi, the country’s highest-grossing private company and second-largest bank, leading the charge with its innovative digital services.
The quality of new startup projects in Kazakhstan has been on the rise in recent years, fueled by a new generation of entrepreneurs with Western education and experience in big tech companies. The country has also created conditions for growth, such as Astana Hub, the largest technopark in Central Asia, which partners with Google for startups and provides support for tech entrepreneurs through various programs and initiatives. Abdrakhmanov emphasizes the need for startups to focus on creating products for global markets rather than just targeting the local population, as Kazakhstan’s strategic location offers access to larger markets in Central Asia, Southeast Asia, the Middle East, North Africa, and the U.S.
When considering entering the Kazakhstan market, investors should be aware of the legal framework and protections for investors, as well as standard procedures and due diligence practices. Registering with the Astana International Financial Center can offer benefits such as settling disputes under English law and tax advantages. Local auditors can help verify a startup’s financial health and integrity, while networking and consulting with local experts can provide valuable insights into the market and potential risks associated with specific companies or founders. Despite these challenges, there are numerous public and private venture capital funds operating in Kazakhstan, with opportunities for early-stage investment in startups.
Abdrakhmanov believes that Kazakhstan’s startup ecosystem will continue to grow rapidly, and similar trends are emerging in other Central Asian countries with exciting regional projects. Foreign funds, such as Plug and Play, Tesla Capital, and Sturgeon VC, are also active in the market, closing deals primarily at the pre-seed and seed stages. As an investor, Abdrakhmanov sees great potential for startups from Kazakhstan and the region to make their mark on the global stage, citing the success of immigrant-founded unicorn startups in the U.S. Forbes Business Council is a key networking organization for business owners and leaders, providing valuable opportunities for growth and collaboration.
