Kazakhstan's Evolving Venture Capital Scene: Tapping into China for Growth

Kazakhstan's venture capital ecosystem is on the rise, driven by Askar Bilisbekov, CEO and board member of Alem Capital Management, who envisions growth fueled by institutional funding, enhanced international connectivity, and expanded ties with China.

“We’re still building our ecosystem,” Bilisbekov remarked during a discussion with TechNode in Astana. He underscored existing gaps in mergers and acquisitions and capital markets, noting that many local investors are still unfamiliar with venture capital.

Despite these challenges, Bilisbekov perceives an increasing interest in sectors beyond Kazakhstan’s entrenched oil and gas industries, particularly in private equity, critical minerals, and technology ventures.

Capitalizing on Opportunities — Supporting Startups to Scale

Alem Capital positions itself as an “investment platform” rather than just a fund. The initiative, backed by the government, obtained its license in July 2025 and raised $115 million in its initial closing by October, divided into $95 million for venture initiatives and $20 million aimed at cryptocurrency investments. Notably, around two-thirds of this capital originated from the private sector.

“We officially kicked off our deployment process this year,” Bilisbekov stated.

The firm has earmarked six funds in its initial cohorts and intends to establish additional funds focusing on sustainable energy and AI-centric data centers, aspiring to reach a cumulative target of $1 billion. While Kazakhstan remains its primary focus, Alem’s mandate spans Central Asia, the Caucasus, and global investments.

Bilisbekov emphasizes that the challenge isn’t purely financial. “It's not about a shortage of capital here; it’s more about the awareness of this asset class itself,” he noted. If investors lack understanding of venture capital, actual investment won’t follow.

Another hurdle for startups is the challenge of scaling. Bilisbekov pointed out that markets in Kazakhstan and other former Soviet countries are often fragmented. Although local entrepreneurs are venturing into the United States, Europe, and Africa, the Chinese market remains relatively untapped.

“Nobody is considering the expanded opportunities in China,” he said. “Cross-border collaboration could open up significant growth potential for founders on both sides.”

Establishing a VC Connection with China

Alem Capital has been proactive in inviting international investors, including Chinese venture capitalists, through its annual LP-GP Summit, designed to integrate them into Kazakhstan’s tech scene.

“I'd like to see more of them,” Bilisbekov expressed. “Given our shared borders and alliances, enhancing our economic development in the venture capital and private equity sectors is essential.”

He identifies promising avenues for Chinese companies in deep technology, spurred by Kazakhstan's STEM capabilities, including its educational institutions and labs.

“Absolutely,” he affirmed when asked about the potential for Chinese firms involved in robotics, AI hardware, and energy technologies to succeed in Kazakhstan. “This could create a solid base for pursuing deep-tech initiatives in our region.”

Kazakhstan's Allure for Global Investors

Bilisbekov champions Kazakhstan's political stability and neutrality as a centerpiece of its investment appeal. “Kazakhstan’s top asset is our political stability and neutrality,” he stated.

He likened the country to “Switzerland in the Asian markets,” citing its strategic relationships with major powers including China, Russia, the United States, and European nations. He highlighted the Astana International Financial Centre, noted for its independent judicial framework.

“Investors seek assurance that their rights will be respected,” he emphasized.

In addition, Kazakhstan’s strides in digital transformation bolster its attractiveness. Bilisbekov noted that a growing range of government services and financial transactions can now be conducted via mobile devices, with internet access approaching 90% penetration.

“I don’t need any ID; it’s all on my phone,” he shared, reflecting the country's digital advancements.

Bilisbekov also spotlighted a burgeoning startup ecosystem, home to over 5,000 new ventures, alongside sectors like fintech and agritech gaining traction. He anticipates a surge in robotics, driven by advancements in AI.

Yet, for Bilisbekov, the best way to experience Kazakhstan's potential is firsthand. “Come visit our country to discover the multitude of opportunities waiting,” he urged. “My perspective is just one of many.”

As Kazakhstan continues to evolve its venture environment, Bilisbekov is optimistic that increased capital, more entrepreneurial talent, and stronger international partnerships with nations like China could propel the country into its next growth chapter.