In the burgeoning landscape of venture capital within Central Asia and the South Caucasus, Uzbekistan has emerged as a key player, securing its position as one of the top three nations in the region for attracting venture investments in the first half of 2023. The Innotechnics report highlights Uzbekistan’s notable share of 25% of all venture transactions in the region, trailing behind Armenia’s 33% and Kazakhstan’s 30%.
Uzbekistan’s average investment per transaction stands at $0.2mn, which is considerably lower than Kazakhstan’s $0.7mn and Armenia’s substantial $3mn, excluding the significant deal with Gecko Robotics. This disparity is also reflected in the total volume of investments, with Armenia absorbing a dominant 88% of venture capital, followed by Kazakhstan at 6%, and Uzbekistan at 3%.
The investment climate in Uzbekistan has been bolstered by a series of economic reforms aimed at liberalizing the market and improving the business environment. The government’s efforts to modernize the financial sector and enhance legal frameworks have made the country more attractive to foreign investors. Additionally, the establishment of the Uzbekistan Venture Capital Association (UZVCA) has played a pivotal role in fostering the venture ecosystem and facilitating the inflow of international capital into Uzbek startups.
The region’s overall economic growth, particularly the significant GDP increases reported in the first quarter of 2023, has further stimulated the progress of startup ecosystems across these countries. This growth has been supported by the active participation of regional venture capitalists and angel investors, such as BigStory VC, BANA Angels, Big Sky Capital, and Triple S VC, who have contributed to the dynamic investment landscape.
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