In 2020, Uzbekistan’s venture capital journey took a significant leap forward with Sturgeon Capital’s entry into the market. Sturgeon Capital allocated almost 60% of its capital to Uzbekistan, investing in startups such as Billz, Zoodmall, Arzon Apteka, FinMedia, Zip24, and Oasis.
During this period, the government actively supported the startup ecosystem by providing grants. Between 2018 and 2023, nearly 300 startups benefited from billions UZS in funding. However, many of these grant-supported startups struggled to succeed, as grants often lack the rigorous market-driven validation associated with venture investments. A turning point came when UzVC was established. Managed by Sturgeon Capital, UzVC launched with a $1 million fund, which was invested in eight startups, including Zypl.ai, TassVision, Sugurta Bozor, Pastoral.ai, Depozit (FinQ), Cargon, and Mohirdev. UzVC is now set to evolve into a Fund of Funds with an impressive 160 billion UZS, they are raising from financial institutions.
Another player in the ecosystem is Simurg VC, which operates as a venture studio, developing its own products and services. Notable projects include Multicard, Multibank, Jett, and Rahmat. Rahmat, for instance, has gained traction as a popular platform for tipping waitstaff in restaurants.
Uzcard Holding’s corporate venture arm, UC Ventures, has also emerged as a significant contributor to the ecosystem. After its initial investment in Iman, UC Ventures has actively supported startups such as Cerebra, Hero Study, Clockster, and Ludito Biznes Navigator. Recently, it signed a term sheet with Zypl for a joint venture, showcasing its flexibility and readiness to invest further for collaboration with holding.
Coworking spaces and community events have played a vital role in fostering innovation. C-Space, a hub for startup activities, hosts events like PizzaPitch, Angel School, and Angel Club. Through the Angel Club, individual investors have committed a minimum of $5,000, resulting in funding for three startups.
Additionally, the Aloqa-powered Startup Garage has expanded to three branches, supporting 45 startup teams annually. Top-performing teams from Startup Garage often secure investments from angels and venture capitalists.
AloqaVentures has been a pivotal force, closing 2024 with investments in 31 startups and committing $1.5 million from Fund I. With plans to launch AloqaVentures Fund II next year, it is poised to further accelerate the ecosystem’s growth. Uzbekistan’s startup investment landscape, initially catalyzed by Sturgeon Capital’s investments in 2020, saw the active participation of local early-stage VCs starting in 2022. By 2024, the ecosystem reached new heights, with a landmark presidential decree (PP 357) set to channel more venture capital into the local economy.
Two companies have a valuation of more than a billion, and several local soonicorns (companies valuation more than 100 mlns USD to 1 bln) are also making progress. This year has also seen substantial private equity interest. Uzoman PE invested $5 million into a single startup, while local startups have begun attracting direct foreign investments. Looking ahead, 2025 promises to be a transformative year with Exits, M&A, Corporate acquisitions and opening Fund of Funds of UzVC, IT Park Ventures, and over five corporate venture arms gearing up to fund talented entrepreneurs and drive innovation in Uzbekistan.
“We have launched Pivot.uz, a platform designed to help startups, talents, and VC, PE, and angel investments gain local recognition in Uzbek and global visibility in English. Media PR for pre-seed and early-stage startups can be expensive, so our mission is to support them for free through Pivot.uz while fostering a venture mindset across the nation.
Let’s embark on this exciting journey together!”
Davron Parmonov
Co-founder of Pivot.uz
Partner at AloqaVentures, ITP VC, PizzaPitch, CS/Angels, Startap Garage
