Kazakhstan's Venture Ecosystem: Strengthening Ties with Chinese Investors

Kazakhstan's venture capital sector is still in its infancy, but Askar Bilisbekov, CEO of Alem Capital Management, envisions substantial growth through institutional investment, enhanced international collaboration, and stronger ties with China.

Bilisbekov recently commented, "We’re still constructing our ecosystem, and many critical components are missing." These gaps particularly affect mergers and acquisitions as well as capital markets, with a notable unfamiliarity around venture capital among local investors. Nonetheless, there's a rising interest in sectors beyond the traditional oil and gas, encompassing private equity, essential minerals, and technology.

Creating Capital and Scaling Startups

Alem Capital sees itself as more than just a fund; it operates as an “investment platform.” After securing a government license in July 2025, it successfully closed its initial fundraising in October, amassing $115 million across two funds—$95 million earmarked for venture capital and $20 million for cryptocurrencies. Approximately two-thirds of this capital originates from private investors.

"We officially launched our deployment process this year," Bilisbekov stated, with the firm set to back six funds during its inaugural two cohorts. Future funds are expected to target energy alternatives and AI data centers, aiming for a total capital reach of $1 billion. The focus remains primarily on Kazakhstan, but the mandate also includes Central Asia, the Caucasus, and global markets.

Capital isn't the only hurdle; awareness of venture options is crucial. Bilisbekov pointed out, "It's not about a lack of capital; it's about understanding the asset class. Without that knowledge, there's no investment." Scaling presents an additional challenge, with Kazakhstan and many former Soviet republics characterized by fragmentation. Although local entrepreneurs are expanding into regions such as the U.S., Europe, and Africa, the Chinese market remains largely untapped. "There's a significant opportunity in expanding into China," he remarked.

Establishing Cross-Border Connections with China

Alem Capital hosted the LP-GP Summit for two consecutive years, successfully drawing in international investors, including those from Chinese venture capital firms. "I want to see more of them," he said, emphasizing the need to develop economic opportunities where Kazakhstan and China can collaborate more closely in venture capital and private equity.

He also identifies a promising potential for Chinese deep-tech businesses to thrive in Kazakhstan, leveraging the country’s STEM workforce, research institutions, and laboratories. "Absolutely," he affirmed when asked about the viability of deep-tech startups in areas like robotics, AI hardware, battery production, and energy transitioning into Kazakhstan.

Kazakhstan's Investment Appeal to Global Investors

Bilisbekov highlights political stability and neutrality as key selling points for Kazakhstan as an investment destination. "Kazakhstan's greatest asset is our political stability and our neutrality," he stated. He likens the country's position in Asian markets to that of Switzerland, underscoring its diplomatic relations with powerful nations like China, Russia, the U.S., Europe, and the U.K.

He also mentions the Astana International Financial Centre, which offers an independent legal framework and protections for investors' rights. "Investors are drawn to countries where their rights are safeguarded," he noted.

Kazakhstan's digital infrastructure is steadily evolving, with many government services and financial transactions now accessible via mobile devices, boasting internet reach of nearly 90%. "Most of my identification is on my phone," he added, showcasing the nation’s progressive digital approach. There are more than 5,000 active startups in sectors like fintech, agritech, spacetech, along with a burgeoning interest in robotics, fueled by advancements in AI.

"The safest way to understand what we offer is to come visit in person," Bilisbekov encouraged. “One perspective doesn’t represent the entire landscape. There's a diverse range of opportunities here.”

While Kazakhstan's venture ecosystem is still maturing, with increased capital, more founders, and reinforced international connections—especially with China—the possibilities for growth appear promising.