The record year was largely driven by two landmark deals–Higgsfield’s USD 130 million Series A and Uzum’s USD 65.5 million round–which together accounted for 61 per cent of total funding.
Excluding these outliers, the adjusted market volume stood at USD 124.5 million, reflecting steady organic growth of 31 per cent compared to 2024’s USD 95 million. Kazakhstan led with USD 71 million, followed by Uzbekistan at USD 99 million, while Kyrgyzstan and Tajikistan remained nascent with USD 3 million and USD 5 million respectively.
Beyond capital, 2025 marked a shift toward cross-border integration. Startups are scaling into neighboring markets, and VCs are increasingly executing regional deals. Higgsfield’s Series A demonstrated that local technical talent can combine with global entrepreneurial expertise, while Cargon’s USD 5 million facility from U.S.-based Alma marked the first time a global venture debt fund backed a Central Asian startup. The launch of ACM’s fund of funds is also expected to act as a catalyst for attracting international institutional capital.
The region’s 18.5 per cent conversion rate of startups to funded ventures is top-tier globally, validating the potential of local founders. However, the density of only 4.6 funded startups per 1 million people reveals a critical “pipeline gap.”
With an estimated 2,000 startups at MVP stage but only 370 unique funded startups over three years, the ecosystem risks bottlenecking at growth stage.
To align with global benchmarks, Central Asia will need USD 0.5 billion annually to match Brazil’s emerging market median of 0.19% of GDP, or USD 1.1 billion to reach EU levels of 0.31 per cent of GDP. That translates to increasing total regional AUM from ~USD 1 billion today to USD 3.6 billion for sustainable growth, or USD 6.3-10 billion for a “tech leap” comparable to the Baltics or UAE.Investor views remain divided on the bottleneck. Some point to a severe shortage of Series A capital, with few funds able to write USD 5-10 million checks needed for scaling. Others argue that capital is abundant, but the pipeline of high-quality founders is lacking, particularly in Uzbekistan, where private capital is chasing a limited number of deals.
Looking ahead, the report stresses that systemic reforms are essential. These include enabling pension funds to allocate 15-22 per cent to VC, introducing angel tax incentives, and harmonizing regulations to create a unified 80 million-plus market. Benchmarking against the Baltics–which scaled through unified regulation, high-value exits, and strong rule of law–shows the potential if Central Asia can replicate that model.
Without addressing both capital and pipeline gaps, the region risks stagnation despite its talent base. If reforms materialize, Central Asia could transition from a frontier market to a credible contender on the global venture map.
