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BTS Digital Ventures is a corporate venture fund based in Kazakhstan, operating as the venture arm of ERG (Eurasian Resources Group), which is 40% state-owned. The fund focuses on investing in and supporting digital startups and technology-driven businesses, particularly in Kazakhstan and Central Asia. Following a significant restructuring in 2024, BTS Digital Ventures transitioned into the Phoenix Fund LP, continuing its mission to drive digital innovation.
The firm is headquartered in Nur-Sultan (Astana) and has a strong emphasis on fostering growth within the digital ecosystem of the region. BTS Digital Ventures aims to enhance the digital infrastructure and public services through its investments. Notable milestones include the successful launch of the BTS Digital platform, which has over 6 million users, and the management of IT infrastructure through its Smart Cities initiative.
BTS Digital Ventures targets early-stage companies in sectors such as govtech, digital health, AI, fintech, and healthcare. The fund invests in pre-seed, seed, seed-plus, and Series A stages, with a strong emphasis on supporting startups that contribute to the digital transformation of public services in Kazakhstan. The firm seeks to back technology-driven startups that can enhance the digital infrastructure and improve public service delivery.
Investment criteria include a focus on social impact, particularly through digital government services. BTS Digital Ventures looks for founders who demonstrate a clear vision for their technology and its application in improving public services. The fund also values startups that can navigate the complexities of public sector partnerships, leveraging its connections with government entities to facilitate growth.
BTS Digital Ventures has a notable portfolio that includes:
Previously, Salem Social Media was part of the portfolio but was sold and reformed during the 2024 restructuring. The focus on digital transformation and social impact remains central to the fund's investment strategy.
Galymzhan Akhmetov: Head of BTS Digital Ventures. He has a background in corporate finance and venture capital, with experience in leading investments in technology-driven startups. His expertise includes navigating public sector partnerships and enhancing digital infrastructure.
Startups interested in pitching to BTS Digital Ventures should visit their website at digitalventures.kz. It is recommended to include a detailed business plan, highlighting the startup's alignment with the fund's focus on digital innovation and social impact. Founders should be prepared for a thorough evaluation process, as the fund seeks to understand the startup's potential for growth and its ability to navigate public sector partnerships.
Response times may vary, so founders should be patient after submitting their pitches. Warm introductions through mutual connections can enhance the chances of a successful pitch.
In 2024, BTS Digital Ventures underwent a major restructuring, transitioning into the Phoenix Fund LP, which is now registered at the AIFC. This restructuring included the acquisition of a 49.98% stake by Kazakhtelecom, alongside participation from ERG and Digital Opportunities I. The firm continues to focus on its mission of driving digital innovation in Kazakhstan.
Salem Social Media was sold and reformed during this restructuring, marking a significant change in the fund's portfolio strategy.
What are the investment criteria for BTS Digital Ventures?
BTS Digital Ventures focuses on early-stage technology-driven startups in sectors such as govtech, digital health, AI, fintech, and healthcare. The fund looks for companies that can contribute to the digital transformation of public services and enhance the digital infrastructure in Kazakhstan.
How can startups apply or pitch to BTS Digital Ventures?
Startups interested in pitching to BTS Digital Ventures can do so through their website at digitalventures.kz. It is advisable to include a clear business plan and demonstrate how the startup aligns with the fund's focus on digital innovation.
What makes BTS Digital Ventures different from other venture funds?
BTS Digital Ventures is uniquely positioned as the venture arm of ERG, a state-linked entity, which provides access to government connections and resources that can significantly benefit portfolio companies. This relationship enhances the fund's ability to support startups in navigating public sector partnerships.
What is the geographic scope of BTS Digital Ventures?
The fund primarily focuses on Kazakhstan and the broader Central Asian region, aiming to foster digital innovation and entrepreneurship within this market.
What is the fund size and check size for investments?
While specific fund size and check size details are not disclosed, BTS Digital Ventures targets early-stage investments, typically in pre-seed, seed, seed-plus, and Series A stages.
What kind of post-investment involvement can startups expect?
BTS Digital Ventures provides strategic guidance and access to a broad network within the digital ecosystem, helping startups navigate the complexities of public sector partnerships and enhance their growth potential.
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