(MENAFN- Trend News Agency) ASTANA, Kazakhstan, October 3. The development of a full-fledged venture capital market in Kazakhstan and the region is impossible without the creation of an institutional framework, Almas Chukin, managing partner of the Visor investment company, said as he addressed the Digital Bridge 2025 forum, Trend 's special correspondent reports.

According to him, venture capital investments are a crucial element in the development of the capital market, without which sustainable economic growth is impossible, but Kazakhstan doesn't yet have the conditions for their full development.

"We must understand: any investment is a risk. In the venture sector, a third of companies cease operations, a third exist with varying success, and only a few reach an IPO. It's a marathon, in which only a few out of thousands of participants reach the finish," the analyst noted.

Chukin emphasized that venture capital must have a source, while in developed countries, this source is pension funds, university endowments, and other large institutions.

"In Kazakhstan, pension funds are prohibited by law from investing in venture projects, and banks are effectively prohibited as well. As a result, we lack a financial base for venture capital. Only a few enthusiasts and private investors are saving the market," he also said.

According to Chukin, the total volume of venture capital deals in Kazakhstan last year amounted to approximately $75 million.

"If divided by 12 months, it comes to approximately $5 million per month. For comparison, the revenue of one large store can be greater. This shows that the market's scale is still minimal," he emphasized.

Chukin added that Kazakhstan needs to establish genuine venture capital funds with professional teams that are skilled in fundraising, working with industries, and managing investments.

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