The Global Startup Ecosystem Report 2024

Kazakhstan’s Startup Oasis: A Talented Tech Pool Takes On Silicon Valley

Kazakhstan is largest landlocked country in the world and the largest economy in Central Asia, accounting for over 61% of the region’s GDP and boasting the highest GDP per capita. Rich with nomadic history and a fusion of traditional and modern architecture, Kazakhstan stands as a cornerstone of economic development and political stability in the region, offering a friendly, safe environment that fosters innovation and provides an ideal foundation for IT companies to grow and thrive.

The country showcases its rapidly-evolving IT ecosystem with the largest International Tech Hub in Central Asia, Astana Hub, leading the charge. Amidst the country’s steppe and arid land, Astana Hub is working to create an oasis for IT startups in Astana that will propel the country to the national stage. The capital city lying on the banks of the Ishim river, Astana is moving beyond its reliance on oil to showcase its technological power. Astana Hub is working on bringing the country’s brightest talents and technology specialists abroad to build a strong presence in Silicon Valley.

Top-Tier Support for Entrepreneurs Drives Astana’s Innovation Boom

Amidst stunning landscapes and natural wonders, Kazakhstan’s tech talent is a shining star. A strong intellectual potential positions the country to compete globally as an emerging IT nation committed to concise, data-driven progress that addresses the needs of its local population. A regional hub for entrepreneurship, Kazakhstan’s dynamic IT ecosystem is backed by government policies aiming to foster innovation. Tax incentives such as reduced rates and exemptions from corporate income tax allow for ease of business operation, while simplified rules and streamlined business registration further encourage founders. Specialized schools for business education actively develop and support an entrepreneurial mindset from an early age.

Kazakhstan is known for its hospitality, welcoming all with an open heart. Innovators in Kazakhstan revel in this support, with Astana Hub, an organization dedicated to fostering a thriving ecosystem, offering world-class advancement for its talent. Ideally situated in Astana’s innovation center and surrounded by key institutions such as the Astana International Financial Center and prestigious Nazarbayev University and Astana IT University, Astana Hub’s comprehensive support empowers startups from the earliest stages of education and formation to international expansion. Astana Hub offers business development and scaling programs, special tax and visa conditions, and a robust informational, educational, and material support infrastructure. It allows entrepreneurs to test hypotheses, identify viable business models, increase sales and user bases, attract investment, and expand into global markets.

The tech park is truly an oasis, spanning over 22,000 square meters. Not only can entrepreneurs spend their working days in world-class office spaces, coworking areas, event venues, and meeting rooms, the tech park is a place of enjoyment. The park offers recreational zones with a cinema and coffee shops that highlight the sociable style of Kazakhs and allow international entrepreneurs a great chance to get to know the cheerful locals.
"Astana Hub’s mission is to elevate Kazakhstan’s tech sector to a global stage, creating real opportunities for innovation and economic growth. We’re not just fostering startups; we’re establishing Kazakhstan as a bridge between Central Asia and the world, empowering local talent to compete internationally.”

Magzhan Madiyev undefined
CEO of Astana Hub

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World-Class Support for Founders and Talent

For global founders looking for the perfect launching pad to become a unicorn, Astana is a funding haven. The more than 1,500 companies currently registered at Astana Hub, including over 400 foreign members, have generated $943.5 million in tech exports, attracted $665.5 million in investments, achieved a total income of $2.7 billion, and created over 28,000 jobs. In May 2024, Astana Hub launched Astana Hub Ventures, a $10 million venture capital fund aiming to create a unicorn by 2027, by forming a portfolio of 20 promising startups. The venture fund bolsters support for exports and the global expansion of Kazakhstani IT products through financing and access to international markets. In support of this goal, President Kassym-Jomart Tokayev tasked the government with increasing IT export volume to $1 billion by 2026.

“Our mission goes beyond just investing funds,” Madiyev adds. “We aim to provide mentoring and consulting support, leveraging our global partner network to help startups attract investments from foreign venture funds, scale up, and compete successfully on the world stage.”

That support extends not only to local tech talent, but to those from abroad. Kazakhstan offers a unique option for global nomads to live and work in the country with its Digital Nomad Visa (DNV), designed specifically for international IT specialists. DNV differs from similar schemes in that it allows tech talent to obtain a visa with a more simplified process in a short approval time. Global nomads may enjoy advanced digital infrastructure, high-speed internet, and a multicultural society with diverse natural landscapes.

Training Tech Specialists to Fuel Growth in Astana and Abroad

A culture proud of its roots and committed to its future, Kazakhstan is empowering its people. To achieve the $1 billion goal, Astana Hub is focused on developing a talented base of internationally-competitive trained personnel. 

Astana Hub dedicates a significant portion of its efforts to training tech specialists and entrepreneurs and has graduated more than 17,000 students from its technology park training programs since its inception in 2018.
Its youth educational programs allow young and eager entrepreneurs to develop their ideas into startups and distance learning tools bolster competitiveness on a large scale.

Known for their ambition, Kazakhstan is also committed to supporting women’s tech success. Programs such as IT Aiel and Tech Girls support women entrepreneurship, with IT Aiel providing free IT training to more than 1,000 unemployed women in 2023 and over 2,200 women from 17 regions in Kazakhstan in 2024.

Tech Orda, an initiative of the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan, was developed with Astana Hub to enhance human capital in the tech sector. In support of President Tokayev’s directive to train at least 100,000 highly-qualified tech specialists, the program allows any citizen of Kazakhstan aged 18 to 45 to apply for a $1,300 grant to study at a private tech school, with opportunities available for students from nearly every region of the country. Between 2022 and 2023, 100 accredited schools trained nearly 10,000 specialists in various tech fields as part of the program.

As Artificial Intelligence (AI) surges to become the most in-demand tech sector, Kazakhstan is poised to launch best-in-class startups led by leading specialists in the field. To increase its competitiveness, Astana Hub has dedicated resources specifically to the sub-sector. Tomorrow School is the first AI school in Kazakhstan based on the 01 EDU platform, offering a unique opportunity to receive free on-campus education in the field of AI without requiring any prior programming experience.

In September 2024, Astana Hub launched the AI Movement, a large-scale initiative aimed at advancing AI development in the country. The program features talent attraction initiatives such as AI Quest, a mobile game testing AI knowledge with the chance to win prizes, and Decentrathon 2.0, the largest multi-location hackathon in Kazakhstan. The AI People Bootcamp, a four-week online intensive course, and additional online programs offer further educational opportunities. Resources such as open access to AI startup information, datasets for learning AI models, and AI startup accelerator AI’preneurs provide additional advancement opportunities for AI development.

Astana Gains International Reach in Silicon Valley

Backed by its impressive pool of tech talent, Astana Hub’s aim is to scale its influence abroad. The dynamic hub has already made gains in establishing itself as a reliable partner for the biggest players in the fields of IT and startup development. Astana Hub was the first partner of Google for Startups in Central Asia, launching the joint Silkway Accelerator in 2022. Having concluded its fifth iteration in 2024, companies in the accelerator will approach $500 million in capital and have attracted over $27 million in investments while expanding into international markets.

In partnership with California-based Draper University, founded by international investor and venture capitalist Tim Draper, in 2023 Astana Hub launched the Hero Training Program to bridge Central Eurasia and California, which offered new opportunities to 30+ startups from Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan, Azerbaijan, Mongolia, and Georgia in Silicon Valley. The third cohort of the program started in October 2024, when 10 startups traveled to Silicon Valley for an immersive five-week accelerator program. A further show of confidence in the strength of Kazakhstan’s innovative entrepreneurship, Draper invested over $1 million in Smart City and AdTech startup Citix, a world-leader in digital outdoor advertising.

Astana Hub introduced two acceleration programs in Silicon Valley in 2024 through partnerships with AlchemistX and the SilkRoad Innovation Hub. The acceleration program with AlchemistX is a 10-week intensive program for mature B2B startups entering the U.S. market, which offers access to the broad networking of Alchemist Accelerator, including experience-sharing from program alumni and coaching from industry experts. Silicon Valley Residency Program is a 16-week program at Silkroad Innovation Hub featuring a sector-agnostic soft-landing for Central Eurasian Startups pursuing new opportunities and network extension in Silicon Valley. The initiatives have enabled 23 startups to accelerate their growth in the Bay Area and expand into the U.S. market.

As Astana Hub continues its support for local startups abroad, one thing is clear: Astana Hub’s burgeoning international prowess is ripe for welcoming a new era of advancement for Kazakhstani startups
This vibrant oasis of innovation fosters a nurturing environment where ideas can grow and develop.