Start-ups - The Times Of Central Asia

Viewing results 1 - 6 of 7

Are Innovative Industries One of the Kyrgyz Republic’s Few 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,...

Technology Start-ups Women-owned Enterprises

Kyrgyz Startup Yessa Helping Women to Reclaim Pleasure

When Begaiym Zamirbek left her job at the Institute for War & Peace Reporting (IWPR), where everything was stable and predictable, she dove into the significantly riskier world of startups with her new venture, Yessa. That’s how her path of entrepreneurship began, which led her to Vietnam. Yessa supplies audio erotic entertainment for women, like companies including Quinn and Femtasy. Both boast a vast audience and have raised over $3 Million in investments. Quinn is based in the U.S., and its European counterpart, Femtasy, operates out of Berlin. Neither are available in languages other than English, French, and Deutsch, however. But Yessa is trying to fix that by making audio erotica for women available in other languages. My previous partner “did things in bed that I agreed to unconditionally. I didn't even know I had a choice,” Zamirbek told TCA. “I came out of that relationship traumatized and didn't realize, but after the breakup, any thought of sex made me feel disgusted. I accidentally came across an audio where the men were caring, tender and asked for my consent for literally everything. I thought that if such audios exist, then there must be such partners in reality. And I was not mistaken. I regretted that all such content was in English, and then I thought that Russian-speaking women also need such things.”Apart from her full-time job at IWPR, Zamirbek is a seasoned podcast host. Her podcast, Second Shift, which she has been co-hosting for five years, was the first feminist podcast in Kyrgyzstan and quickly became one of the most popular ones. That experience set her on the path toward the launch of her audio company. During the COVID-19 pandemic, Zamirbek spent a lot of time at home listening to erotica in English, which piqued her interest in exploring her desires and going on dates. In 2024, inspired by TikTok, where more and more women were openly discussing the intimate details of their relationships, she began implementing her startup idea. After seeking advice from a venture capital professional and completing the Y Combinator’s Startup School, Zamirbek started looking for a tech co-founder. “We met at the March 8 march for women's rights in Bishkek. Anna Karamurzina came up to say ‘hello’ because she knew of me. She had worked in IT for over twelve years, and I came to her with an offer to build a startup just when she needed a job. Since August 2024, we’ve been the co-founders of the Yessa app.” The ex-IWPR Program Manager for Central Asia began her journey in the startup ecosystem by participating in the Startup Nation hackathon as the Co-Founder of Yessa in September 2024, where she was awarded a special prize as the strongest startups chosen from over 40 teams. Zamirbek soon realized that she needed resources and expertise to scale Yessa and followed the path of one of the Kyrgyz founders of Antler, one of the leading global accelerators backing early-stage companies with offices worldwide. With the help of several...

Start-ups Digital Technologies Astana Education Economy

Bridging Borders: Louis Albertini on Central Asia’s Tech Growth, Startup Challenges, and Building Global Connections

Louis Albertini has been involved in technology and startups across the United States and Kazakhstan for a decade, working with Silicon Valley and venture capital-backed startups based in Kazakhstan, including ORBI and Farel. He is passionate about supporting founders in succeeding in the U.S. market and building connections between the U.S. and Kazakhstan. TCA spoke with Louis to gain insights from his experiences in the Kazakhstan market. TCA: Can you share your career journey in Kazakhstan and what motivated you to work in diverse roles like marketing, consulting, and startups? Louis: I arrived in Kazakhstan in July 2015 as a Princeton in Asia fellow and spent a year working in the President's Office at KIMEP University with Dr. Chan Young Bang. I served as his communications officer, writing official correspondence, liaising with different departments, and managing the day-to-day affairs of the office. After my PiA fellowship ended, I decided to stay in Almaty and start exploring the nascent startup scene. In 2016, I joined the founding team of a startup called ORBI, which developed 360-degree video recording glasses. This was the first Kazakhstani startup that attracted significant venture financing and was invited to interview at Y Combinator in 2016. We raised about $7 million for the company and secured $350 thousand in pre-orders, the largest ever for a Kazakh start-up. Back then, the YC batches were extremely small, and interviews were conducted in person at their historic but now-closed 320 Pioneer Way office in Mountain View. This was my first applied experience with Kazakhstan startups, and I've been involved ever since. TCA: What inspired you to create Redfern Partners, and how did you help address the challenges SMBs and tech companies face in Central Asia? Louis: Working at the American Chamber of Commerce gave me some insight into the market research landscape in Kazakhstan, primarily by listening to business leaders complain about available options. Besides the major consulting firms like McKinsey and BCG, which are more focused on quasi-state projects that need stamps of approval, the SMB space for high-quality independent research was largely empty. The Big 4 have variations of market research services, but their core specialty is audit and tax. Most local incumbents were formed in the early 1990s and use outdated methodologies that produce inaccurate or trivial insights. International research firms lack local coverage and rely on a loose patchwork of freelancers. Redfern was formed to offer high-quality, independent market research services to fill this void. We completed about twenty projects and continue to be a partner for the European Bank for Reconstruction and Development (EBRD) small business initiative. TCA: What common mistakes did you see SMBs in the region make, and how did you help them overcome these? Louis: The SMB space in Kazakhstan is hugely underserved and overlooked, offering the largest surface area regarding technology adoption. In the US, SMBs employ nearly half of the American workforce, representing 45% of America's GDP. In Kazakhstan, the market is mainly asymmetrical, with large players...

Science Digitalization Digital Technologies Silicon Valley Start-ups AI

Kazakh AI Startup Enters U.S. and Japanese Transportation Markets

Astana-based startup Call2action.ai, a resident of the Astana Hub International Technology Park, is making strides in the US market. Currently, over 40 transportation companies in the United States have expressed an interest in the startup’s product. Two companies have already become commercial clients, and three others are engaged in pilot projects. Call2action.ai has developed the world’s first SaaS solution based on Generative Artificial Intelligence for automating hiring in the transportation and logistics sectors. This innovative platform streamlines the hiring process, making it more efficient and cost-effective. Following the successful validation of its project hypotheses, Call2action.ai has launched an investment round and entered negotiations with venture capital funds and business angels, some of whom are already supporting the startup and planning investments. “The American market is vastly different from the Kazakh market, but its potential for revolutionizing hiring processes is enormous,” said Ersultan Dzhusakinov, CEO and co-founder of Call2action.ai. “Participation in the Silicon Valley Residency Program, supported by Astana Hub and the Ministry of Digitalization, has allowed us to accelerate our progress in Silicon Valley. Within a few months, we’ve secured contracts with two companies, three pilot projects, and attracted interest from major Japanese corporations like Persol Group and Mitsui Group. We expect our product to reach a valuation of $1 billion in the coming years.” The startup collaborates with US innovation hubs, including the Silkroad Innovation Hub, and actively participates in international trade shows such as TechCrunch Disrupt and CESV 2024. Additionally, Call2action.ai has been selected to join Mitsui Group’s accelerator program, which begins in 2025. Call2action.ai is among 22 Central Asian startups that participated in accelerator programs in Silicon Valley under the AlchemistX and Silicon Valley Residency Program initiatives. These programs were organized by Astana Hub and Silkroad Innovation Hub, with support from the World Bank and FPIP projects. Kazakhstani startups are becoming competitive on global markets. For example: • ZebraEye project, led by Yana Ten, specializes in diagnosing ophthalmic diseases using artificial intelligence and attracted investor attention at Web Summit Qatar 2024. • ClickLog, which develops freight optimization software, has established companies in Estonia and Poland to target European markets. • Dereknet plans to expand into the Middle East and Europe, including Kuwait, Qatar, Norway, the UK, and the US.

Start-ups Digitization Silicon Valley Eurasian Digitalization Reforms

Startups From Central Eurasia Set to Conquer Silicon Valley

The following 10-15 years will see the birth of large tech companies originating from Central Eurasia, a vast region including Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, Turkey, and Uzbekistan. This was stated at the first technology conference entitled Central Eurasia at Silicon Valley. The conference brought together the region's top 100 startups, American venture investors, large company leaders, and tech giants from Silicon Valley. According to the event organizers, Central Eurasia has enormous untapped potential. With a population of more than 100 million people and an average age of 27, about 200,000 young people in the region annually receive an education in the field of STEM (science, technology, education, mathematics). The area has everything necessary to develop the tech industry: universities, a startup ecosystem, venture funds, and its representative in Silicon Valley — Silkroad Innovation Hub, which, in the first year of its operation, attracted 80 resident startups and more than $30 million in investments. At the conference, Zhaslan Madiyev, Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan, said that Kazakhstan accounts for 50% of GDP in Central Eurasia. Kazakhstan is in 10th place in the UN GLOBAL Online Services Index and 3rd place among Central and South Asian countries in the Global Innovation Index (after Iran and India). “Recently, there has been a rapid development of new technologies, AI, blockchain, and all this stimulates the market and entrepreneurs to create startups,” Madiyev said. The minister added that Kazakhstani investors are ready to invest $100,000-$200,000 in startups at an early stage. Still, finding $1 million or $2 million in investment can be challenging, even in a more mature stage. Therefore, he urged the promotion of Kazakhstani startups abroad, especially in Silicon Valley.

Entrepreneurship Business Support Start-ups Training

Success of Kazakhstan’s JobEscape Start-up

Kazakhstan’s largest venture fund, Tumar Venture LP, whose key investors are the World Bank and the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry, has invested a further 250 thousand US dollars in the Kazakh start-up JobEscape. As announced by the Ministry of Digital Development on 17 June, the total investment in the project now stands at 450 thousand US dollars. JobEscape is a platform that facilitates the acquisition of new skills required to start a freelancing career, through the provision of solutions unique to freelancers and career changers, access to training and a wide range of AI tools. A global project, JobEscape has users from the USA, Canada, Australia, and European countries. Regarding funding, Aslan Sultanov, CEO of Tumar VF, stated: “We invested in JobEscape in the last round and have seen the project grow from literally $10,000 in monthly revenue to almost $1 million in annual revenue. Seeing this dynamic rise, we are confident that the start-up has the potential to grow into a billion-dollar company with roots in Kazakhstan. We are pleased to support the team in creating such a global initiative.” Similarly encouraged by the platform’s development, Miras Sovetov, CEO and co-founder of JobEscape, said: “At the moment, the company’s annual revenue is already close to $1 million. The goal is to grow to US$6 million in 2025. The product is now being widely used in Western markets due to the rapid development of products in the field of AI. Investments in this round will help the company increase its customer base and increase the number of AI tools on the platform. Investors from the UAE and Azerbaijan are already entering the project, which confirms its competitiveness in the global market. The next step will be raising money from American funds for further growth and potential exit (sale of the start-up).”