Kazakhstan seeds $20M fund-of-funds under World Bank AI programme
What's the deal? Alem Capital ManagementDealroom has a profile for this one. Try Dealroom → will manage a $20 million fund-of-funds to back growth-stage startups in Kazakhstan. The vehicle sits inside the World BankDealroom has a profile for this one. Try Dealroom →'s $75 million ALEM project, approved on September 30 to develop the country's high-tech sector through 2031.
Why now? The World Bank estimates Kazakhstan faces a $20–25 million annual financing gap for growth-stage startups — companies past the early stage but short of capital to scale. The fund-of-funds targets exactly that shortfall.
What's the endgame? By December 2031, ALEM aims to support 800 startups through pre-seed, seed, and international acceleration programmes, train 28,000 young people in advanced tech skills, and help more than 50 companies raise venture capital. The World Bank expects the wider project to mobilise at least $60 million in private capital and create up to 10,000 jobs.
The broader initiative spans four areas: advanced digital and AI skills, high-performance computing access, robotics prototyping facilities, and better late-stage startup financing. It also connects founders with international accelerators and technology hubs.
Why it matters: Kazakhstan is pushing to diversify beyond traditional sectors. Its ICT exports rose from $132 million in 2019 to $1.1 billion in 2025, with a target of $5 billion by 2030. The project aligns with the country's National Development Plan through 2029 and its 2024–2029 AI development concept.
ALEM builds on the earlier World Bank-backed Fostering Productive Innovation Project, which supported 162 startups and research teams. Those drew more than $23 million in initial sales and private investment and created nearly 2,000 jobs.
The signal: The fund-of-funds model marks a shift toward commercialisation and investment attraction, using public money to crowd in private capital. For Central Asia, it is a test of whether a state-backed vehicle can seed a venture ecosystem from a standing start.
Read more: pivot.uz
Image credit: daltonwb
