Venture Capital - Uzbekistan

Uzbekistan

Highlights

The country in Uzbekistan is projected to see a Total Capital Raised in the Venture Capital market market reaching US$29.81m in 2024.
Later Stage dominates the market with a projected market volume of US$11.54m in 2024.
In global comparison, most Capital Raised will be generated the United States (US$136.6bn in 2024).
Amidst Uzbekistan's growing tech scene, Venture Capital investments are surging, fueling innovation and entrepreneurship in the capital raising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Uzbekistan has been experiencing significant growth in recent years, driven by several factors. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the development and expansion of the Venture Capital sector in Uzbekistan.

Customer preferences: Investors in Uzbekistan have shown a growing interest in Venture Capital as a means of diversifying their investment portfolios and seeking higher returns. With the country's economy undergoing a period of transformation and modernization, there is a strong appetite for funding innovative and high-growth startups that can contribute to the country's development. Investors are increasingly looking for opportunities to support local entrepreneurs and contribute to the growth of the domestic startup ecosystem.

Trends in the market: One of the key trends in the Venture Capital market in Uzbekistan is the increasing number of early-stage investments. As the startup ecosystem in the country continues to mature, more entrepreneurs are seeking funding at the early stages of their ventures. This trend is fueled by a growing number of incubators, accelerators, and startup support programs that provide mentorship, networking opportunities, and access to funding for early-stage startups. Another trend in the market is the emergence of sector-specific Venture Capital funds. Investors are recognizing the potential for growth in specific sectors such as technology, agriculture, and renewable energy. These sector-focused funds bring specialized knowledge and expertise to the table, enabling them to identify and invest in startups with the highest growth potential in their respective sectors.

Local special circumstances: Uzbekistan's government has implemented several initiatives to promote entrepreneurship and attract foreign investment. The establishment of innovation centers, technology parks, and startup incubators has created a supportive ecosystem for startups to thrive. Additionally, the government has introduced regulatory reforms to streamline the process of starting and growing a business, making it easier for entrepreneurs to access funding and scale their ventures.

Underlying macroeconomic factors: The overall economic growth in Uzbekistan has played a significant role in the development of the Venture Capital market. The country has experienced stable economic growth in recent years, driven by investments in infrastructure, diversification of industries, and improved business climate. This positive macroeconomic environment has attracted both local and foreign investors to the Venture Capital market, as they see the potential for high returns on their investments. In conclusion, the Venture Capital market in Uzbekistan is experiencing rapid growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Investors are increasingly interested in supporting early-stage startups and sector-specific ventures, while the government's initiatives to promote entrepreneurship and attract foreign investment have created a supportive ecosystem for startups to flourish. With a stable and growing economy, Uzbekistan presents attractive investment opportunities for Venture Capital firms and investors looking to tap into the country's emerging startup ecosystem.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.