Development of the venture market in the Republic of Kazakhstan: problems and priorities

Abstract

The relevance of research on venture capital financing in developing countries, which includes Kazakhstan, is due to the acute demand for risk investments for the implementation of the innovation potential of developing countries against the background of an underdeveloped degree of venture capital financing institutions. The aim of the work is to identify barriers to the development of the venture capital market in Kazakhstan and to determine the priorities for its further development. In the work were applied methods of analysis and synthesis, inductive method, the method of SWOT-analysis. The information base of the study consisted of scientific papers on venture capital financing, published in foreign-refereed journals and domestic publications, as well as publications of the OECD and the WEF, materials of JSC “QazTech Ventures”. As part of the study the theoretical aspects of the formation of venture capital and analyzed the works of interest in the context of the study. The analysis of the state of the venture capital market in Kazakhstan, showing the strengths and weaknesses of the venture capital market, identifying internal and external factors affecting the functioning of the venture capital market in Kazakhstan, as well as showing the threats and opportunities for development. Particular attention in the article is paid to issues of state intervention in the sphere of regulation and stimulation of development of the venture capital market. In particular, the aspects that distinguish the role of the state and the private sector in the development of venture capital financing were identified. On the basis of the study the priorities for the development of the venture capital market in Kazakhstan in modern conditions were identified. The practical significance of the results of the study is determined by their focus on improving the venture capital institution of the country. The results of the study can be applied in the process of determining the directions of public policy in the sphere of venture capital financing.