HomeAnalysisVenture Capital Markets in Caucasus and Central Asia Expand

Venture Capital Markets in Caucasus and Central Asia Expand

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 over the past six years, expanding at a quicker pace compared to the Nordics, Europe (excluding CEE region), and the global venture capital market.

In 2023, the investment amount surpassed $110M. Despite this 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 $80M in 2023. The average transaction size has grown 3.8 times over the same period, reaching $1M in 2023. The sizes of these transactions are 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 $6M, doubling the volume from the previous year.

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

The total sum of venture capital financing in Azerbaijan stood at approximately $2.2M, representing a decrease compared to the previous year.

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

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

The study is available at the following link

VCWire

19/03/2024