Uzbekistan intends to increase venture capital investment to $2 bln by 2030

TASHKENT. Feb 16 (Interfax) - Uzbekistan plans to increase venture capital investment in startups to $2 billion by 2030; Uzbek President Shavkat Mirziyoyev has signed a corresponding resolution.

"The following are defined as target indicators for the development of the startup ecosystem by 2030: increasing the number of startup projects to 5,000 and the level of attracted venture capital investments to $2 billion," the resolution on measures to introduce a comprehensive ecosystem for supporting startups said. The resolution was published in the national database of legislation.

According to the resolution, in the coming years it is planned that around 2,000 startup ideas initiated by young people will be commercialized, of which around 400 projects are expected to be introduced to international markets. The implementation of startup projects is expected to create more than 20,000 new jobs.

To stimulate entrepreneurial activity, winners of innovative idea competitions and hackathons will be eligible to receive loans of up to $20,000 from state venture capital funds. In addition, the provision of grants of up to $10,000 is envisaged under the Digital Startups program.

Starting in 2027, the country will begin the phased creation of research and development centers focused on supporting startups. In particular, the Digital Technologies Ministry plans to open a research hub in Nurafshan in the Tashkent region.

According to the ministry, over 2,000 IT companies currently operate in the country, providing jobs for around 30,000 people. More than 70,000 young specialists are employed independently in the IT sector.

Uzbekistan's first IT park, the Directorate of the Technological Park of Software Products and Information Technologies, was established in July 2019. In October last year, Mirziyoyev participated in the foundation stone laying ceremony for the second phase of the IT park project. In partnership with Data Volt, it is planned that a data center with a capacity of 12 MW costing $150 million will be built there. In subsequent stages, it is intended to attract an additional $3 billion in investment and bring the total capacity to 500 MW.