25/01/2025
As part of a roundtable discussion organized by IT Park Uzbekistan in collaboration with StrategEast, specialists and experts examined the best global practices for fostering venture ecosystems in Uzbekistan. The event brought together key players in venture capital, including IT Park Ventures and AloqaVentures, startup experts, and international partners, such as Marvin Liao, Amy Peck, and Chris Berry.
During the meeting, participants explored key aspects aimed at enhancing Uzbekistan's startup ecosystem, including legislative initiatives, the role of government in supporting innovation, methods for attracting international investments, and improving conditions for startups.
Key Points in Uzbekistan
Anatoly Motkin opened the session by emphasizing the importance of exchanging best practices and harmonizing the legislative framework to develop venture ecosystems in Uzbekistan.
Zaynab Atabaeva, Investment Manager at IT Park Ventures, highlighted the significance of establishing IT Park Ventures with an initial capital of $10 million to support pre-seed and seed-stage startups. She also discussed new tax incentives aimed at attracting investors and presented Enterprise Uzbekistan — an International Digital Technology Center designed to create an ecosystem based on English law to attract global partners.
Shakhzod Narzullaev, Head of Startup Ecosystem Development and Venture Investment at IT Park Uzbekistan, outlined key elements necessary for the successful development of a venture ecosystem in the country. He stressed the importance of establishing platforms for knowledge exchange between startups and investors, improving the legal framework for venture financing, and cultivating a culture of venture entrepreneurship. He also underscored the need for investments in educational initiatives to train qualified professionals, support incubation and acceleration programs, and promote startups in international markets.
Davron Parmanov, Managing Partner at AloqaVentures, addressed the development of venture culture and the necessity of additional incubation programs, such as the creation of a business angel school.
Areas for Growth
During the roundtable, participants discussed current challenges and growth opportunities, including legislative gaps, such as the absence of clear norms for bankruptcy and fund structuring, difficulties in attracting highly qualified talent to startups, limited access to growth-stage funding, and reliance on state capital.
Insights from International Experts
Chris Berry (USMAC) emphasized the importance of efficient bankruptcy legislation and transparency of the legal system for the advancement of entrepreneurship. He noted that rigid laws hinder entrepreneurs, whereas stable legal environments serve to foster the growth of startups. Additionally, Mr. Berry highlighted the challenges associated with attracting skilled talent to startups in developing nations, recommending the implementation of innovative programs to address this issue. He further cautioned against excessive state funding, which could lead to inflated valuations, and advocated for the refinement of tax policies to stimulate innovation.
Marvin Liao, a venture investment expert, pointed out that overly bureaucratic legal systems, as seen in countries like Germany or Austria, impede startup development. He proposed simplifying processes, using the U.S. and U.K. models as examples. Liao also stressed the importance of flexibility in ecosystems to allow startups to scale internationally, benefiting local markets through knowledge exchange. He emphasized the need to educate angel investors and suggested government initiatives to encourage early-stage investments through tax incentives and other measures.
Amy Peck, a consultant specializing in cutting-edge technologies, emphasized the critical role of universities in cultivating and advancing startup ecosystems, suggesting the integration of entrepreneurial programs, incubators and research centers. Furthermore, Ms. Peck underscored the importance of fostering mutually beneficial collaborations between startups and corporations. She also proposed the enhancement of educational initiatives for angel investors and the development of comprehensive support programs for startups through the participation of academic institutions, government-backed incubators, and international accelerators.
Opportunities for Development
The regulatory sandbox initiative launched by Enterprise Uzbekistan, along with partnerships with IFC and Enterprise Singapore, is designed to establish a flexible condition for startups to foster innovation and growth.
Strengthening international partnerships is also a critical factor. In this regard, Uzbekistan is implementing educational and investment programs aimed at cultivating an ecosystem with global outreach and the capacity for international expansion.
In conclusion, participants emphasized that robust government support, advancements in the legislative framework, and the creation of favorable conditions for entrepreneurs will enable Uzbekistan to emerge as a prominent hub for startups and venture capital investments in Central Asia.
