Venture financing

Creation of venture funds facilitates involvement of private capital in innovation activity, reduces risks, and forms a mechanism of effective co-operation between government and private sector in the sphere of commercialization of innovative ideas.

In present, National Innovation Fund has initiated foundation of  six venture funds together with Kazakhstani private partners. Investment policy of these funds is addressed to search and attract projects in the areas of ICT-technologies, new construction materials, pharmaceutics, and other prospective export-oriented areas.

 Today, the authorized capital of the six venture funds created in Kazakhstan is equal to 130 million US dollars. Venture Capital is investors’ capital created to finance new, developing, or competing for a market share enterprises and firms, and therefore, it is associated to a high or relatively high level of risk; long-term investments into venture securities or enterprises with an expectation of high profits. Venture investments are usually risky investments with profitability higher than average level.