TLDR:
- Venture capital funding in Central Asia and Caucasus is growing 5.5 times faster than in Nordic countries.
- The region is seeing rapid expansion in its startup ecosystem supported by various strategic initiatives to foster growth.
The venture capital market in Central Asia and Caucasus region is experiencing significant growth, surpassing that of Nordic countries. Recent research indicates that venture financing in the region is expanding five times faster than in the Nordics. The start-up ecosystem in this region has seen substantial growth, with successful start-ups, supportive foundations, and active business angels contributing to a mature start-up community. Strategic measures such as establishing specialized agencies, IT parks, and public financing initiatives have laid the foundation for a thriving venture ecosystem in the region. Leading the growth is Kazakhstan, with a sixfold increase in venture capital transactions over the past six years, reaching over 80 million US dollars in 2023. Other countries like Georgia and Azerbaijan have also shown significant growth in venture investment volumes. However, despite the rapid expansion, the venture capital sector in this region remains relatively small, indicating potential for further investments. Efforts to enhance market maturity and attract international investors are underway, positioning Central Asia and Caucasus as a prominent player on the global stage in innovation and entrepreneurship.
