Kazakhstan's "Fund of Funds" Raises $115 Million and Begins Financing AI Projects

On the sidelines of the major international technology forum GITEX AI Kazakhstan 2026, the transition of Kazakhstan's venture market to a fundamentally new stage of development was announced.

The "Fund of Funds", established at the instruction of Head of State Kassym-Jomart Tokayev and managed by the Alem Capital Management (ACM) platform, has officially entered the active investment phase, delivering a unique synergy of state resources, Astana Hub capabilities, and private capital.

As Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev noted, the project, initiated in late 2024, was a response to the need for a qualitative leap in the digital economy, and its implementation in 2026 — the Year of Digitalisation and AI — confirms the seriousness of the country's technological ambitions.

Thanks to a four-way synergy of government authority, the Cabinet, Astana Hub resources, and private investors, a "first close" of $115 million was recorded in October 2025, with more than 60% of the funds contributed by Kazakhstani businesses. Two key directions are already actively operating under ACM management: the Alem Ventures Fund, focused on AI startups, and the Alem Crypto Fund, specialising in digital assets.

At GITEX, the approval of deals with three major venture funds managed by Bigsky, MOST, and Sturgeon was also announced; these will serve as conduits of capital for domestic companies on the international stage.

ACM's strategy encompasses not only talent support but also the creation of critical AI infrastructure, including the development of a data centre network and securing its energy resources. Kazakhstan already accounts for more than 60% of all venture deals in the region, and the Fund of Funds' medium-term target of growing total capital to $1 billion will open direct access for domestic entrepreneurs to the expertise of world leaders such as Andreessen Horowitz and Lightspeed.

The investment process, designed to span the next five years, is intended to substantially raise corporate governance standards and secure Kazakhstan's status as the primary technology and investment hub of Central Eurasia.