Yelzhan Kushekbayev on MA7 Angels Club

In the summer of 2024, the MA7 Angels Club was launched as a new business angel investment community founded by venture investor Murat AbdrakhmanovDealroom has a profile for this one. Try Dealroom →. The club provides members with the opportunity to co-invest alongside Murat in carefully selected startups, sharing both risks and potential rewards. CEO Yelzhan KushekbayevDealroom has a profile for this one. Try Dealroom →, an experienced investor and early adopter of technology, discussed the club’s investment approach, membership requirements, and the importance of diversification in venture capital.

Yelzhan studied Computer Engineering in Dublin and earned a Doctorate in Business Administration from AlmaU. His journey into venture investing began in 2020 during the pandemic when he joined Astana HubDealroom has a profile for this one. Try Dealroom →’s online business angel school. Since then, he has made 90 startup investments, using both personal and family funds, with investment amounts ranging from $10,000 to $100,000 per project and a median check of $30,000.

Venture capital is one of the riskiest forms of investment, even riskier than cryptocurrencies. While assets like real estate or stock indices may lose value, startup failures often result in complete capital loss. Statistics indicate that 90% of startups do not survive, making diversification essential. Rather than investing large sums in only a few projects, Yelzhan emphasizes spreading investments across multiple startups to increase the chances of success. He notes that venture funds typically invest in 50-100 startups, relying on one or two major successes to generate significant returns and cover losses. Business angels should adopt a similar approach, albeit on a smaller scale, to reduce risks.

The club operates as a private investment community where Murat Abdrakhmanov personally selects and validates startups before presenting them to members. Each startup undergoes thorough due diligence, including legal checks, business model evaluation, and market potential analysis. Once Murat commits to an investment, members are given the opportunity to co-invest. Since its inception, the club has already closed several deals, with more in the pipeline. Investment rounds often fill quickly, sometimes within hours or days.

Currently, MA7 Angels Club has around 80 members, primarily consisting of Murat and Yelzhan’s acquaintances who share an interest in venture investing. However, the club is expanding and is open to accepting new participants. Membership involves a compliance screening process, requiring verification of the legal source of funds, confirmation that the investor is not a politically exposed person, and an assessment of reputation and regulatory compliance. Investors are expected to commit at least $100,000 annually, ideally distributing this amount across multiple startups to maximize their chances of success.

Yelzhan concludes by stressing the importance of diversification in venture investing. Rather than trying to identify a single winning startup, he advises investors to build a broad portfolio, increasing their chances of finding a high-performing venture. He sums it up with a key lesson: instead of searching for a needle in a haystack, buy the entire haystack—invest in a wide range of startups, and success will follow.



Source: Digital Business



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