Nomadiq Innovation Hub. On the work of the new IT hub in Singapore for startups from Central Asia

Olzhas Zhiyenkul, CEO Investbanq, @olzhas_tesla

Alisher Tolegen, Head of VC, @vleesh

About Us

Olzhas. I am the founder and board member of Investbanq, which manages the Nomadiq Innovation Hub. Investbanq is an AI-based wealth management investment platform that addresses all client investment needs within a single interface. We apply new artificial intelligence technologies for financial institutions, developed entirely by our team.

Alisher. I am the head of the venture division at Investbanq. I studied finance at a university in the Middle East and began my career in a Private Equity Fund. I worked in various countries in Southeast Asia, from Myanmar to Vietnam. Then I joined one of the Big Four accounting firms, working in external audit in Kazakhstan and Singapore. Later, I became a manager in several ecosystem projects in Kazakhstan, where I gained my core experience in venture capital.

Olzhas. I became one of the first venture investors in Central Asia. In 2015, I started my career as a business angel. Working in Kazakhstan, Southeast Asia, and Europe, I invested in the region's first technology startups. I remember talking to the first founders and often having to explain that a 50%/50% split does not work in the venture world, and it is not the formula with which one can build a technology institution. This shows how far Central Asia has come in the last seven years in understanding and implementing projects with high growth potential.

My personal portfolio includes 12 projects, including one Unicorn, which perhaps makes me the first and currently only person in Central Asia to achieve this with a project from the seed round. Most of the projects have already moved into the Growth Stage.

About the Company

Olzhas. The company Investbanq was founded in April 2022 by me and my co-founder Talgat Kantaev. Before that, I had extensive experience in the investment sector on the buy-side and sell-side, in brokerage and consulting institutions, as well as in international investment companies. I founded and successfully exited several businesses, from accounting and outsourcing companies to software studios and corporate management projects. The culmination of this experience was the creation of Investbanq.

Recently, Alisher and I conducted an audit of our venture strategy with one of the Big Four firms. The audit confirmed that we have an excellent track record and a deep understanding of seed investments. We decided to institutionalize our venture activities within Investbanq. We have a proven international financial institution track record with over 40% annual returns, experience, know-how, and a strong team.

We began to think about how best to develop our venture activities. In the end, we decided to start with the idea of scaleration, which helps more mature startups at the seed or Series A stage find new growth points. We saw that in Central Asia and Kazakhstan, there are already many incubators and accelerators, but support for Series A startups is insufficient, and local markets are not always large and deep enough.

We created an "investment bank for startups" — a platform of investment tools that provides access to resources that are usually available only to large companies. Our goal is to provide startups with growth tools and other related services through the Nomadiq Innovation Hub.

Goals of the Nomadiq Innovation Hub

Olzhas.

1. Provide extensive assistance to a select group of projects.

2. Help startups scale beyond their home jurisdiction.

3. Position Central Asia as a venture market to attract more capital.

We support cooperation between Central and East Asia and see great potential in this. We strive to ensure that not only projects from Central Asia successfully scale beyond their regions, but also companies from Southeast Asia find new markets in Central Asia.

4. Creating sustainable growth strategies.

Southeast Asia represents a huge market with a large GDP and high population density. In these countries, the internet economy is growing rapidly, expanding by 30-40% annually. This makes the region attractive for businesses that understand its dynamics. The cultural aspect also plays an important role.

Alisher. Singapore is known as a global leader in technological and financial development, not only within Southeast Asia but also on the world stage. It serves as a key hub for access to the Southeast Asian region due to its modern infrastructure and active digitalization in government structures, financial, and insurance institutions. Legislation and legal protection play an important role. Safe agreements are well protected. Access to financial markets and the presence of many VC and CVC funds make Singapore attractive for startups. These are the main reasons for choosing this region for scaling startups in Southeast Asia.

How to Become Part of the Hub

Alisher. The Nomadiq Hub website features a brief description of all current programs. You can apply through the form on the website or send an email to nomadiq@investbanq.com.

Our hub offers individual services, taking into account the diverse needs of startups. Regarding application criteria: we consider startups ready to scale and enter international markets. We provide support for attracting major VCs and managing cap tables. Our hub operates not only in Southeast Asia but also in other regions, including Central Kazakhstan, Maine, and the Middle East.

We welcome startups from all over Central Asia, not just Kazakhstan. Our hub collaborates with Singaporean startups, helping them enter the global market, including Central Asia. Our expected results include expanding the international customer base, increasing revenue, and starting the scaling process to capture the global market. An important part of this process is the evolution of startup founders, as each new market requires understanding and study. We have gathered experts from all over the world, which allows us to provide comprehensive support and advice.

Olzhas. We started without strict requirements for monthly revenue levels, MRR. Basic criteria include having a proven product-market fit and an understanding of project scaling. General selection criteria include a market revenue potential of at least $100 million over five to seven years, technical scalability, team analysis, and profit potential. We also value the innovativeness of the idea and its positive impact on society or the industry. Our approach is not limited to financial aspects; social impact is also important.

About the Development of the IT Industry in Central Asia

The venture ecosystem in Central Asia is part of a global network that is currently undergoing consolidation. The volume of venture funding decreased by 54% from 2021 to 2023. However, our investment team expects a return of liquidity within two years, which suggests promising opportunities for venture investments at present.

Central Asia benefits from a low starting level and a constant increase in the number of quality projects. At the Nomadiq Innovation Hub, we look optimistically to the future, expecting an increase in the number of successful founders from Central Asia entering the world stage and creating significant innovations.

About Plans

Alisher. We will actively attract new startups and members to our hub. We already have a significant flow of projects wishing to become part of our ecosystem and enter Southeast Asian markets with our support. Among the global goals is expansion into new territories, including Western markets. Southeast Asia can serve as a platform for our startups from Central Asia to enter Latin American or North American markets, including Silicon Valley, with the aim of becoming leading players and achieving success on the world stage.

Olzhas. In the next 12 months, we plan to join 10 to 15 projects to our hub. We will significantly increase resources so that the venture team becomes even stronger and can serve more projects.

We plan to expand our platform in the UAE. We also strive to increase the arsenal of tools available through our innovation hub.

We have many projects in the pipeline at the selection stage. Therefore, in the near future, we will increase the total number of projects in our portfolio.