Innovative technology - The Times Of Central Asia

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Venture capital

How a New Generation of Startups From Kazakhstan Attracted International Investors

A software engineering team writes code in Almaty for a parent company incorporated in Delaware. Most of its revenue comes from customers in the United States and Singapore, with the United Kingdom another important market. Until recently, this business model was unusual in Kazakhstan. It is now becoming more common as entrepreneurs launch international companies from the outset rather than focus solely on the domestic market. Rather than adapt foreign products for Kazakhstan’s population of about 20 million, these founders are developing technology for customers abroad. Their success is drawing interest from international venture capital firms and raising Kazakhstan’s profile as a source of high-growth technology companies. Growth Measured in Numbers The latest Startups and Venture Capital in Central Asia 2026 report by RISE Research shows how quickly Kazakhstan’s venture sector is growing. Venture investment reached $209 million in 2025, nearly three times the $71 million raised a year earlier. The figure also exceeded the combined total elsewhere in Central Asia. The aggregate valuation of funded startups in Kazakhstan rose to $2.16 billion. RISE Research also found that U.S.-oriented startups with roots in Kazakhstan raised more than $214 million in 2025. This helps explain the rise in international interest. Venture funds are backing companies built for global markets rather than businesses dependent on a relatively small domestic customer base. Among the best-known examples is Higgsfield AI, which develops software for creating and editing AI-generated video. The company raised $50 million in Series A financing in September 2025. An $80 million extension in January 2026 brought the round to more than $130 million and valued the company at over $1.3 billion, confirming its status as Kazakhstan’s first unicorn. Cerebra AI develops software that analyzes CT scans to help clinicians detect ischemic and hemorrhagic strokes. The platform uses the ASPECTS scale and can return an analysis within minutes. Codiplay supplies educational software and Internet of Things kits used to teach programming and hands-on electronics in 13 countries, including South Korea and the UK. The company raised $9 million in Series A financing in January 2025. Parqour develops parking management software with automated license plate recognition. Its systems operate in 22 countries and cover more than 300 parking areas. These companies work in different fields, but their businesses are built mainly around software and intellectual property, even where hardware is part of the product. That makes expansion abroad less capital-intensive and helps explain their appeal to foreign investors. Why Investors Are Paying Attention Now Kazakhstan’s emergence as Central Asia’s leading venture capital market did not happen overnight. The record investment figures of 2025 followed several years of work in the startup sector, including Astana Hub’s accelerator programs and tax incentives. More founders also began developing products for international markets. One clear sign was international recognition. Three startups with founders from Kazakhstan were accepted into Y Combinator in 2025, matching the total accepted in all previous years combined, according to RISE Research. For international investors, acceptance into the Silicon Valley accelerator provides external validation as...

Startups

How the Kyrgyz Republic’s High Technology Park is Quietly Building a Digital Powerhouse

In an exclusive two-part interview with The Times of Central Asia, Elena Nechaeva, Head of Communications at the High Technology Park of the Kyrgyz Republic (HTP), offers a rare and detailed look into one of Central Asia’s most underreported digital ecosystems. While much attention has been given to the tech potential of Uzbekistan and Kazakhstan, Kyrgyzstan is quietly and deliberately attempting to build a globally connected digital economy, and, in recent years, it has gone from strength to strength. With deepening links to Silicon Valley and a new generation of ambitious startups and entrepreneurs, the country’s tech talent is emerging as some of the most competitive in the region. In this special series, The Times of Central Asia reveals the start-ups, entrepreneurs, and trends shaping Kyrgyzstan’s regional innovation space and why international investors should start paying attention. TCA: Can you briefly describe the mission and strategic goals of the High Technology Park (HTP)? Elena Nechaeva: The High Technology Park of the Kyrgyz Republic is built on a simple belief: the internet is our ocean. For a landlocked country, digital technologies open limitless space, a borderless world where geography no longer defines opportunity. The High Technology Park was created to help Kyrgyz companies export their talent and products and integrate into the wider global technology economy. As a government-backed organization, our mission is to accelerate the country’s economic growth through IT and to create global opportunities for local talent whilst developing the Kyrgyz Republic as an emerging hub for innovation. In the long term, our strategy is focused on three clear priorities. Firstly, we want to reach $1 billion in annual revenue generated by HTP resident companies. We aim to scale Kyrgyz IT exports by supporting companies with a favorable tax regime. This means 0% VAT, 0% corporate income tax, 0% sales tax, 5% personal income tax, to help them grow internationally. Then, we want to enable the first unicorn startup founded in the Kyrgyz Republic. The High Technology Park supports startups through international programs, accelerators, and a number of global partnerships, allowing them to access networks in Silicon Valley, Europe, and Asia. We have also set an ambitious target to train and empower 50,000 software developers. Developing these skills is perhaps the most important thing that we do. We are working closely with universities, schools, bootcamps, and private EdTech companies to cultivate a new generation of engineers and digitally savvy professionals. [caption id="attachment_40039" align="aligncenter" width="1280"] Image courtesy of The High Technology Park, Kyrgyz Republic @ the 2025 Gitex Expo in Dubai[/caption] TCA: How has the High Technology Park evolved since its inception? What have been the most significant milestones to date? Nechaeva: Since its inception, the High Technology Park has evolved from a small initiative into a fast-growing IT hub. The Kyrgyz tech ecosystem began developing in 2008, originally with the founding of the Kyrgyz Association of Software and Service Developers - the first professional organization uniting the country’s tech companies. This laid the foundation for a specialized IT regime. The...

Agriculture

Tokayev Proposes Linking Farm Subsidies to Advanced Technologies

Kazakhstan’s President Kassym-Jomart Tokayev has proposed that state support for farmers be tied to their adoption of advanced technologies, including artificial intelligence (AI). The proposal was made during his speech at the country’s second Agricultural Workers Forum. Tokayev noted that while many farms are already using innovations such as smart farming systems, agricultural drones, satellite monitoring, and AI, technological development at the national level remains uneven. “We must move from isolated ‘smart’ solutions to full-scale digital agricultural production,” Tokayev stated. “Every farm should be incentivized to adopt digital technologies. State support should be directed toward those enterprises implementing innovations, including artificial intelligence.” Tokayev also reported that preferential lending to the agricultural sector has exceeded $1.9 billion in 2025, ten times more than five years ago. He stressed that the adoption of innovative technologies must extend beyond producers to include the regulatory authorities overseeing the agro-industrial sector. “It is necessary to develop an effective system for tracking and controlling state grain reserves using digital technologies and AI tools,” he said. “This requires modernizing existing grain elevators and constructing new, modern facilities. In state-backed financing programs for private elevators, having electronic systems for grain intake and dispatch should be a mandatory requirement.” Tokayev also highlighted persistent issues in agricultural data systems, which he described as fragmented and lacking integration. This, he said, results in policy decisions based on unreliable statistics. He called for comprehensive, objective data to be provided by the upcoming National Agricultural Census, which should serve as the foundation for updating digital infrastructure across the agro-industrial complex. Previously, The Times of Central Asia reported that Kazakhstan achieved a record harvest this year of grains, oilseeds, and legumes.

Unified Innovation Cluster

Kazakhstan to Establish Unified Innovation Cluster

Kazakhstan is set to create a unified national innovation cluster by merging two of its key technological institutions: the International Technopark of IT Startups, Astana Hub, and the Park of Innovative Technologies fund, also known as Tech Garden. The merger bill has passed its first reading in parliament. Officials say the initiative is aimed at accelerating the development of Kazakhstan’s digital economy and enhancing its global competitiveness. Merging Platforms for Greater Synergy Astana Hub is currently Kazakhstan’s largest platform supporting IT entrepreneurs, offering tax incentives and accelerator programs. In contrast, Tech Garden is funded through mandatory contributions from subsoil users, 1% of their income, to support digital innovation in the industrial sector. According to Member of Parliament Aituar Koshmambetov, the integration of these two entities will create powerful synergies. “We’re combining infrastructure, finances, experts, mentors, support programs, and market access opportunities,” Koshmambetov said. A Digital Marketplace for Innovation At the heart of the merged structure will be a digital platform designed to link science, business, government, and startups. “It will function as a marketplace for challenges and solutions. Residents can see where subsoil users’ contributions are being directed and propose technologies to meet those needs,” explained Minister of Digital Development Zhaslan Madiev. Another component of the initiative is the expansion of the Single Window of the National Innovation System (SW NIS), which allows IT companies and scientists to directly access the development needs of industrial firms. The platform is already operating in pilot mode at astana-hub.com. Expanded Benefits for Residents Post-merger, participants from both institutions will retain all existing benefits. Tech Garden residents will gain access to Astana Hub’s startup acceleration programs, while Astana Hub startups will have new opportunities to secure contracts from major industrial players. Officials also hope the consolidated cluster will attract greater interest from international corporations. Kazakhstan already collaborates with major tech players like Indrive and Google, and negotiations are ongoing with Telegram. “Kazakhstan has the unique advantage of being able to engage comfortably with China, the U.S., and Russia,” Koshmambetov noted. “That’s a strategic asset we should fully leverage.” Economic Impact and Future Prospects Data from 2024 show that every 1 Kazakhstani tenge (KZT) invested in Astana Hub yields: 3 KZT ($0.0060) in private investment 14 KZT ($0.028) in resident company revenue 3 KZT ($0.0060) in export earnings A trade surplus 4.6 times the input Notable successes include a Kazakh-developed game generating $18 million in annual revenue, a smart scooter management system used in 20 global cities, and Higgsfield AI, a startup ranked among Google’s global top 20. Strategic Focus on Artificial Intelligence President Kassym-Jomart Tokayev has repeatedly emphasized the importance of digital transformation and artificial intelligence (AI) in national development. “The development of artificial intelligence must be accelerated and integrated into public services and Smart City projects,” Tokayev said during a recent government meeting. Prime Minister Olzhas Bektenov has also highlighted the practical use of AI in sectors such as ecology, social protection, and industry. He has instructed ministries to digitalize systems for managing...

Start-ups

Are Innovative Industries One of the Kyrgyz Republic’s Opportunities to Prosper?

The emergence of AI is considered by many to be a major tectonic shift, much like the emergence of the internet in its time. It is hard to overestimate the role innovation plays in our lives, with founders all over the world trying to pioneer our way out of the next problem. At first glance, the Kyrgyz Republic’s tech sector does not represent anything particularly meaningful. The chances of the small landlocked country - the farthest from any ocean in the world, which is the most affordable mode of shipping mode - integrating into innovative global ecosystems on its own seem wholly unrealistic. However, if we look at the dynamics of development in its tech sector, the potential is there. Is there a chance that the Kyrgyz Republic can become a part of the global tech scene? [caption id="attachment_30359" align="aligncenter" width="1440"] Image: The World in Maps[/caption] According to Ashley Vance at Bloomberg, “It’s about a landlocked nation, one with very few natural resources, hoping to gen up a tech industry on the fly.” The Kyrgyz startup ecosystem is clearly in its nascent stages, meaning that you haven’t heard about the Kyrgyz Skype. Yet. The country’s position in the Global Innovation Index in 2024 is 99th, up from 106th in 2023. The Global Startup Ecosystem Index, meanwhile, has the Kyrgyz Republic lower than 100th place in its 2024 ranking, down from 99th in 2023. “The country has maintained second position in Central Asia and seventh in the Central Asia Regional Economic Cooperation Program (CAREC) business region,” according to this index. The Kyrgyz Republic’s VC ranking of 103rd in the Venture Capital & Private Equity Country Attractiveness has barely changed over the last couple of years. When compared to peer group economies, it is obvious that the Kyrgyz Republic needs significant improvements in the depth of the capital market, social environment, entrepreneurial opportunities, and economic activity. [caption id="attachment_30358" align="aligncenter" width="1796"] Image: Venture Capital & Private Equity Country Attractiveness Index 2023[/caption] In terms of the number of venture capital deals, the Kyrgyz Republic is still lagging behind its neighbors. Out of $110+ million of venture capital funding in the region in 2023, the Kyrgyz contribution was only a fraction at $1.1 million. In 2024, this increased to $1.7 million, however, with the country's first venture capital law soon to be adopted. [caption id="attachment_30357" align="aligncenter" width="826"] Image Venture Capital in Central Asia 2024[/caption] The High Technology Park of the Kyrgyz Republic, which is a special tax regime for IT companies targeting exports, is demonstrating a steady growth, with its revenue expanding from under a million in 2013, to a more impressive $130 Million in 2024. The park’s residents are mostly companies providing IT outsourcing for developed markets, but the signs of a turn towards launching their own IT products are there. A separate world-first Creative Industries Park has also been set up to support the country's creative industries, including startups. When it comes to the largest Kyrgyz startups, they are founded by Kyrgyz nationals,...

Transport

Unmanned ‘Aero Taxi’ Planned to Launch in Kazakhstan Next Year

Kazakhstan plans to introduce an unmanned aero taxi service by 2026, following the example of South Korea, Minister of Transportation Marat Karabayev has announced. He outlined the project's timeline and potential routes. First Route and Project Details According to Karabayev, there are currently no legal restrictions preventing the launch of aeromobile services in Kazakhstan. "The first stage will involve a route from Almaty to the town of Alatau. We are in discussions with Kazakh entrepreneurs, and a pilot launch is planned for 2026. These will be silent, hydrogen-fueled helicopters capable of carrying five passengers. One Kazakhstani company has already expressed interest in developing the aeromobility sector," he said. He noted that similar technologies are being actively developed in South Korea and the United States, and Kazakhstan is studying their potential implementation. "We are currently assessing how this technology can be adapted for our country," Karabayev added. Regulatory Framework and International Experience The minister also mentioned that the Ministry of Digital Development, Innovation, and Aerospace Industry has proposed studying international regulatory practices for such vehicles. "We will review this proposal. As unmanned vehicles become more common in Kazakhstan, we will develop the necessary legislative framework," he assured. However, Karabayev clarified that no amendments are currently being considered regarding liability for accidents involving unmanned vehicles. Global Developments in Aero Taxi Technology Unmanned aero taxis are already being tested and partially deployed in several countries. In the UAE, the Chinese company EHang has conducted pilot flights in Dubai, while in China, EHang has obtained certification for commercial operations. Meanwhile, South Korea is also conducting trials of air taxi services.