Uzbekistan will allocate up to 150 billion sum for startup funding

Uzbekistan will introduce new mechanisms for financing startups and stimulating private investments. These measures are outlined in a decree signed following the VI open dialogue between President Shavkat Mirziyoyev and entrepreneurs. The new measures will become part of the further development of the country's startup ecosystem, in which IT Park Uzbekistan supports technological projects, develops the venture market, and builds infrastructure for interaction between startups and investors.

According to the document, the "Entrepreneur of the Future" program will be implemented from 2027 to 2030. Under this program, the National Venture Fund UzVC will finance up to 30 startups on a competitive basis across eight priority areas.

Each project can receive up to five billion Uzbek som in investments. Funding will be provided for a period of three years in the form of an interest-free, unsecured convertible loan or SAFE.

The state's share in the startup will not exceed 49%. At the same time, founders will have the right to subsequently buy out the state's share at market value.

In 2027, an initial allocation of 150 billion Uzbek som from the state budget is planned for the implementation of the program.

8 Priority Areas

The "Entrepreneur of the Future" program will cover startups in the following sectors:
— electrical engineering
— machinery manufacturing and equipment production
— pharmaceuticals
— chemical industry
— building materials
— water and energy-saving technologies
— agriculture and agrotechnologies
— aerospace technologies.

A special legal regime of "regulatory sandbox" will also be introduced for program participants.

In addition, relevant state bodies and industry organizations will assist startups in concluding contracts with enterprises for conducting pilot tests and placing orders.

Tax Benefit for Business Angels

The decree also provides a separate mechanism for stimulating private investments in startups.

An individual who has invested in a startup registered on the unified electronic platform Startup Base, including through SAFE or a convertible loan, will be able to obtain the status of a "startup investor."

If the investor retains their share in the startup for at least three years and then sells it, the income from the sale will be exempt from personal income tax.

It is expected that the new mechanisms will expand startups' access to financing, increase private investor participation in the ecosystem, and accelerate the market launch of technological projects.