Talgat Kantaev, a leading expert and one of the founders of the Investbanq investment platform, spoke on the episode of the Invest Dala podcast about the current state and prospects of venture capital investments in Kazakhstan, as well as the role of Kazakhstani startups on the global stage. We have identified 5 insights that will become a valuable guide for anyone who wants to understand how venture capital investments are developing in Kazakhstan and what is needed for Kazakhstani startups to become competitive in the global market.

1. There are not enough large venture capital investors in Kazakhstan who are ready to support startups at mature stages.

"Large investors most often invest in American startups, enter into secondary transactions - they do not give such large checks to Kazakhstani companies."

Despite the growing interest in startups in Kazakhstan, the venture ecosystem remains at an early stage of development. Most investments are focused on the pre-seed and seed stages. As soon as the project reaches a more mature stage — for example, Series A, where we are already talking about a company's valuation exceeding $30 million — investor interest drops sharply. The reason is that there are practically no large venture capital investors in the country who are willing to risk such sums. Those with the appropriate capital prefer to invest in proven American startups or participate in secondary transactions, bypassing Kazakhstani projects.

2. It's important not just to ask questions, but to ask them correctly.

"When starting a startup, it is important not to rush into the "Discovery" stage and collect recommendations correctly"

In the startup ecosystem of Kazakhstan, it is important not to rush into the "Discovery" stage and approach the search for expert advice with prepared questions in order not to waste other people's time and maximize the use of resources.

Launching a startup is not just the birth of an idea, but also careful preparation at every stage. When entrepreneurs turn to experienced investors or advisers, it is important not to rush, many novice founders make the mistake of coming with requests without clear preparation.

In addition, an important aspect is the search for multiple sources of information. There are professionals in every field, and multiple opinions and advice can be gathered on forums and communities. Careful preparation and the right questions are the key to a successful start.

3. Kazakhstan's startup ecosystem is gradually maturing for big numbers.

"I think there are already 5-10 startups in Kazakhstan that have every chance of becoming a unicorn."

Despite the youth of the market, today it is possible to name companies that, according to experts, are closest to the coveted mark of $ 1 billion.

Among the main contenders are Codiplay startup, which recently closed an investment round with an estimate of $100 million, as well as an American company with Kazakh roots Higgsfield, whose valuation has already reached $120 million. There are also such strong players as CTOgram, Clockster, which consistently show steady growth.

"We also hope to reach the level of unicorn," admits Talgat Kantaev, "and we are actively working in this direction." 

4. Kazakhstani specialists have a high level of qualifications, but they still remain in the shadow of the global market

"I have worked with professionals from Singapore, Europe, and veterans of investment banking, and I can confidently say that Kazakhstani specialists are in no way inferior."

Little is known about local specialists outside of Kazakhstan. Unlike representatives of other countries, such as China, Kazakhstanis have not yet achieved widespread recognition on the world stage. However, those who have worked with them directly say unequivocally: the level is very high. 

Kazakhstani specialists are a combination of talent, discipline and high qualifications. Our specialists abroad are still a rarity. But those who have encountered them in work projects always note not only their professionalism, but also their personal qualities. This is a hidden asset of the Kazakh ecosystem, which, with the right support, can become its main driving force.

5. Experience is more important than haste.

"When you see how everything works from the inside, you come to understand which problems really exist and which only seem significant from the outside."

The entrepreneurial spirit of Kazakhstani youth inspires: many are already at university, or even earlier, trying their hand at business. This indicates an inner motivation and a desire to change the world. But, as one of the participants in the venture ecosystem emphasizes, a startup is not just a business initiative, but a serious mechanism related to attracting external capital and a high level of responsibility.

Before launching a startup, young entrepreneurs should work in the industry to gain experience, better understand the problems of the market and consciously choose a direction for development.

A mature outlook, industrial experience, and a focus on a specific problem are the foundations on which a successful startup is built. Therefore, the main advice to novice founders is: take your time. First, practice, observation, and understanding. Then the launch.

You can listen to the full version of the issue with Talgat Kantaev via the link – Youtube, audio platforms.

Invest Dala Podcast is the first podcast about the venture capital market of Kazakhstan in the Kazakh language. Here we are honestly talking about startups, investments and the future of technology business in the country. Created with the support of EA Group.