How venture investors Mirat Akhmetsadikov and Bakhrim Abdulkadyrov evaluate startups

Mirat Akhmetsaadyk, Venture Investor, CEO of MOST Holding, @mirat.akhmetsadyk

Bakhrom Abdukadirov, Business Angel, LinkedIn

About Us

Mirat. For over 10 years, we have been developing the startup ecosystem. Our first fund was launched in 2021, and currently, its portfolio includes 23 startups. We have invested approximately $3.5 million from this fund, having raised an additional $10 million from other investors. Our main hub is located in Almaty, and if you haven't visited us yet, we invite you to check out our IT hub.

Bakhrom. I have been working in the venture industry since 2021. My portfolio includes more than 10 projects, most of which have roots in Uzbekistan but are successfully expanding into neighboring markets. Some of them are actively promoting their products and services in the near abroad. Most of them are already registered in the US and Singapore to attract higher-quality investments.

Additionally, I periodically give lectures in Uzbekistan, actively participate in various platforms, and attend events. I do not have a company; I invest through SAFE Notes or directly in Equity.

How Venture Investors and Funds Evaluate Startups

Mirat. Our fund invests in early-stage startups—Pre-Seed and Seed—when projects already have an MVP or product-market fit and begin generating initial sales. At these stages of development, it is difficult to determine the required level of sales or market share, so we focus on the team. The second important criterion is the technological aspect of the project. At the early stages of a startup's development, technological superiority over competitors plays a crucial role in getting ahead or defending against competitors.

Finally, the third criterion is market size. We prefer startups targeting large or growing markets where there is potential to become successful and achieve "unicorn" status. This is one of the main factors for us.

Additionally, we have 27 other criteria that we consider when evaluating startups.

Bakhrom. A business angel looks at how easily a project can grow and scale, how innovative it is, and what its rapid growth model is. For startups, unlike traditional businesses, growth must be significantly higher and faster. It is also important how competitive the project is in the market and how large that market is. If a startup claims goals of $100 million, it may not attract investors. But if it targets $10 billion, that is already a serious reason for investment.

We also analyze the markets that projects target. We pay attention to the team because, by investing money at the very earliest stage, we are investing in people. And perhaps the most important question is: Is this investment timely? Why does the startup need funding or launch right now? Getting answers to these questions is critically important before investing.

Where We Get Information About New Startups
Mirat. I must mention our CEVF forum https://ventureforum.asia/, which will take place on June 7. This is one of the key events where professionals and representatives of numerous projects gather. It is a great opportunity to meet and discuss hundreds of projects in just one day.

Networking is also important to us. We value meetings with people and crossing paths with them at events. Although we receive many projects via email, social media messages, and other channels, filtering them is quite difficult, so recommendations from other founders and investors are of special significance to us. We also like the classic approach through an elevator pitch, where a project grabs our attention within two to three minutes, and we schedule a meeting for further discussion. Personal meetings and recommendations always remain some of the best ways to select projects. But we also use other information sources, such as accelerators, hubs, media, reading various expert opinions, and so on.

Bakhrom. Business angels can create their own website where they present themselves and opportunities for startups and investors. Investors can also maintain blogs and social media profiles to communicate directly with startups, offer advice, or express their opinions. Referral programs are also popular: when startups that have already received investments recommend other projects, it can be an effective way to attract attention. My projects mostly come through referrals, which makes them more reliable and successful. I also actively participate in various events and business clubs, where I can meet interesting people and discuss potential projects. Sometimes institutional investors approach us directly with offers or questions about our interests. The main thing is to have a clear strategy and parameters for investing, so that startup founders know how to contact you and present their project.

How Much a Startup Can Receive

Mirat. In Kazakhstan and Central Asia, it is difficult to secure investments exceeding one million dollars, with some exceptions. We plan to launch our second fund in September, where we will be able to allocate between $500,000 and one million dollars. However, at the Series A stage, it may require $5 to $10 million. Typically, venture investors in Kazakhstan do not provide such amounts, so it is often necessary to turn to international investors.

To attract the attention of international investors, it is necessary to demonstrate successful results in markets where they are active. For example, if your target is the American market, then by the time of raising over a million dollars in investment, you need to already have traction, such as initial sales or product downloads. You need to achieve success in markets that interest international investors. This will help attract their attention and investment.

At the initial development stages, the investment amount can be minimal or even zero. To refine the product after the idea stage, $50,000 – $100,000 is usually sufficient. At more advanced stages, such as creating an MVP and validating product-market fit, $200,000 – $500,000 is required. These amounts are often available through personal networks and contacts and are ideal for startups.

Bakhrom. It is important for a business angel to understand that over the investment period, he should support at least 20 projects. At the same time, the share of venture investments in his portfolio should not exceed 15%. Typically, over four to five years, he can invest up to one million dollars. At the initial stages of a startup, it is recommended to invest alongside an experienced mentor. In Central Asia, projects are usually allocated no more than $20,000 per project. After a successful launch, one can attract up to $300,000–$500,000 from local investors, and with the support of regional institutional investors, such as Most Ventures, more than $500,000.

On Legal Matters

Mirat. Responsibility always exists, especially at the legal level. You cannot simply take money and do nothing—that is unrealistic. Selecting a project for investment involves numerous reviews and monitoring of the team's work over several months. It is important not to make a mistake and choose a good jurisdiction where the rights of investors and founders are guaranteed. The Astana International Financial Centre is considered a good choice due to English law, and Singapore, Dubai, England, or the state of Delaware can also be considered. Then, attention should be paid to protecting intellectual property and developing internal contracts and meeting protocols to avoid delays in transactions.

Bakhrom. There are potential "red flags" that may be noticed when reviewing projects. For example:

— founders' refusal to provide a pitch deck or financial model
— when the CTO or other key team members work part-time
— if founders want to add too many features to the MVP, this may indicate a lack of focus on the main goals of the project
— mentioning potential investors without real funding commitments
— lack of progress in fundraising over a long period
— absence of an in-house CTO or working with third-party companies on project development
— high salaries or employee turnover
— lack of activity or follow-on investments from previous investors.

Recommendations for Startups to Attract Venture Investments

Mirat. Do not give up; try changing the pitch deck and model if no one invests; perhaps the problem lies in the project or in you. Ask questions, take risks, learn from your own and others' mistakes, and improve yourself. In the venture industry, it is important to stay in focus and on trend, maintain connections, and engage in networking. In traditional business, you can focus on the product, but here everything is different.

Bakhrom. It is important to report on KPIs that demonstrate the startup's progress. Key metrics include the number of users, downloads, and social media followers of the project. A startup should grow by 25-40% per month or quarter. Revenue growth is also important, as well as retention and repurchase rates. These factors strongly influence investor sentiment and can help attract new business angels, both local and foreign.