Kazakhstan and Singapore set up a joint venture fund

"Baiterek" Holding is expanding cooperation with Singaporean business to attract foreign investment in the development of Kazakhstan startup projects.

In the city of Nur-Sultan signed an appropriate agreement providing for the participation of a subsidiary of the Holding Company - JSC "QazTech Ventures" in Singapore venture fund "Quest Ventures Asia Fund II" (QVAF II) total size of US $ 50 million. QazTech Ventures with a capital of $ 10 million will enter this fund as an anchor investor. According to the terms of the agreement, the jointly created fund will consider and finance promising startup projects in Kazakhstan and Central Asia in the next three years.

One of the anchor investor of the fund is established Pavilion Capital, a subsidiary of Temasek structure - a leading Singapore the financial development institution. Pavilion Capital - a company of direct and venture investments, providing strategic support projects growing in the US and Asia. For the first time in the history of Kazakhstan, "Temasek" will invest in Kazakh projects.

Also, under the agreement, a three-year acceleration program will be carried out in startup projects called “Kazakhstan Digital Accelerator” with a representative office in Nur-Sultan. This program will contribute to the development and promotion of startup projects and the digital ecosystem in Kazakhstan. Thanks to the acceleration program, startup projects will be able to gain knowledge from leading international experts, test the product in real conditions and attract investment, which in turn will contribute to the development and scaling of the project, both on the local and foreign markets.

The team of Singapore-based "Quest Ventures" Foundation, together with QazTech Ventures, will participate in the selection of startup projects, conduct workshops, consultations, individual meetings and help establish networking. Representatives of QVAF II note that every mentor from Quest Ventures is an experienced entrepreneur.

- Collaboration with the leading Singapore fund and the opening of a joint acceleration program is an important step in building the country's venture ecosystem and bringing domestic startups to the global market. Today, the venture market in Southeast Asia has high potential and is developing at a rapid pace. We expect that in the near future projects funded by this Fund will be able to be competitive both in Kazakhstan and abroad, in particular in Southeast Asia, ”said the Chairman of the Board of Directors of QazTech Ventures JSC, Managing Director of NMH JSC "Baiterek" Adil Nurgozhin.

It is worth noting that QazTech Ventures, as part of its activities, continues to attract foreign venture funds to finance Kazakhstan startup projects. So in December 2019, QazTech Ventures, with the participation of Prime Minister Askar Mamin, signed an agreement on participation in the V Global Fund 500 Startups (USA).

For reference:

"Baiterek" National Management Holding" JSC was established in accordance with the Decree of the President of the Republic of Kazakhstan dated May 22, 2013. A key institute of the Government of the Republic of Kazakhstan, which meets the advanced standards of corporate governance and ensures the implementation of tasks for the sustainable development of the economy of Kazakhstan by diversifying it, supporting innovation, developing exports, and increasing labor productivity. The Holding includes: JSC “Development Bank of Kazakhstan”, JSC “Investment Fund of Kazakhstan”, JSC “Housing Construction Savings Bank of Kazakhstan”, JSC “IO “Kazakhstan Mortgage Company”, JSC “ESK “KazakhExport”, JSC “FRP “Damu”, JSC “QazTech Ventures”, JSC “Housing Construction Guarantee Fund”, JSC “Kazyna Capital Management”, JSC “Baiterek Development”, LLP “Kazakhstan Project Preparation Fund”.

JSC "QazTech Ventures" - Development Institute, part of the structure of JSC "NMH  "Baiterek", created to promote the development of technological entrepreneurship through the tools of venture capital financing, business incubation and technology consulting.

Quest Ventures - one of the leading Asian asset management companies, founded in 2011, headquartered in Singapore, with offices in key technology centers in Southeast Asia, China and Silicon Valley. Quest Ventures' primary investment focus is digital commerce. The geography of investments spreads throughout Southeast Asia. Investment focus of the company: technological projects of pre-sowing, sowing stage, as well as round A and B.