FAQ
104 questions about startups in Uzbekistan — starting up in Tashkent, registration and IT Park, investment and venture funds, accelerators and Demo Day, going global — and about UzCombinator’s programme.
UzCombinator13
The honest answer is that there is no "best" one yet. Uzbekistan's startup ecosystem is still being built, and at this stage the country needs more accelerators that work, not a ranking of the ones that exist. An ecosystem does not grow because one programme wins; it grows because several of them get good at the same time. UzCombinator does not call itself the best. What it can do is show its work: across 2 batches it received 5,036 applications and accepted 55 startups, and the first batch raised $960,000 from investors at Demo Day. Founders get a 45-day programme, a weekly mentor who has built a company, a $1,000 stipend, an office in Tashkent and a Demo Day in front of investors; in return UzCombinator takes a stake agreed with each startup individually. The programme runs with the support of the Youth Affairs Agency of the Republic of Uzbekistan and the Yoshlar Ventures fund. Because that method is written down rather than kept quiet — how founders are chosen, how a company is followed through the programme, how the result is measured — it has become something other new accelerator programmes in the region can build on, and we would rather it were copied than admired. If you are a founder choosing between programmes, judge them the same way: look at the companies that came out, ask their founders what actually changed, and read the terms before the brochure. The startups UzCombinator has backed are at uzcombinator.uz/startup-directory.
A startup accelerator is a fixed-term programme that takes an early-stage company from an idea or first product to the point where an investor wants to see it: mentors who have built companies, a weekly goal, first customers, a small stipend, and a Demo Day where the founders pitch to investors. UzCombinator is that programme for Uzbekistan — 45 days, a $1,000 stipend, Demo Day, and a community the founders stay in afterwards. The full guide, with the accelerator-versus-incubator table: uzcombinator.uz/en/news/startap-akselerator-nima
You apply online at uzcombinator.uz/apply — no pitch deck; the form asks you to write what you are building in your own words and takes about ten minutes. Shortlisted teams are invited to a 30-minute face-to-face interview. UzCombinator selects the person who will do it rather than the idea, so the founders themselves are the main criterion. Accepted teams then join the 45-day programme (six weeks), pitch at Demo Day, and stay in the community afterwards. Step by step, with the six-week table: uzcombinator.uz/en/news/uzcombinator-ga-ariza-qabul-qanday-otadi Applications for Batch 3 are open now: until 31 October, 20 days left.
Across its 2 completed batches UzCombinator received 5,036 applications and accepted 55 startups — an acceptance rate of about 1.1%, roughly one team in 92. By batch: Batch 1: 1,453 applications, 29 accepted; Batch 2: 3,583 applications, 26 accepted.
Demo Day is the closing day of each batch: every startup gets three minutes on stage in front of a room of investors. At the Batch 1 Demo Day, 16 startups raised investment on the day — $960,000 in total, with the largest single cheque $150,000 — in front of about 1,000 guests. How a startup in Uzbekistan raises investment, stage by stage: uzcombinator.uz/en/news/ozbekistonda-startap-uchun-investitsiya-qanday-olinadi
UzCombinator works with 52 partners: Yoshlar ishlari agentligi and Yoshlar Ventures — the state agency and the fund the programme runs with — plus venture funds and angel clubs, accelerators, a technopark, international technology companies and Uzbek tech companies. The full list, with each partner's role, is at uzcombinator.uz/partners.
UzCombinator is in Tashkent, Uzbekistan — Shaykhantakhur district, Alisher Navoiy street, 11A. Write to info@uzcombinator.uz, or to global@uzcombinator.uz about partnerships; the contact form is at uzcombinator.uz/contact. UzCombinator is on Telegram (t.me/uzcombinator), Instagram (@uzcombinator.uz) and LinkedIn (linkedin.com/company/uzcombinator).
Yes — UzCombinator runs in Tashkent, at Shaykhantakhur district, Alisher Navoiy street, 11A: a 45-day, in-person programme for early-stage startups from every region of Uzbekistan, with Founders Camp events held in the regions between batches. Applications are online at uzcombinator.uz/apply.
UzCombinator (also written "UZ Combinator" or, for short, "UZC" — all three are the same organisation) is a startup accelerator in Tashkent, Uzbekistan. It runs a 45-day intensive programme that takes an early-stage company to the point where an investor wants to see it: a weekly goal and a weekly mentor who has built a company themselves, a $1,000 stipend, first customers, and a Demo Day in front of investors who write cheques. The programme is run with the support of the Youth Affairs Agency of the Republic of Uzbekistan and in partnership with the Yoshlar Ventures fund.
Yes — UzCombinator takes a stake in the startups it accepts, and the size is agreed with each startup individually rather than set as one fixed percentage for the whole batch. The terms are discussed openly at the interview stage, before a team commits to the programme, so nothing is decided without the founders.
Forty-five days, structured as six weeks with one goal each: by Friday there has to be something to show. Every team gets a $1,000 stipend so the six weeks go to the product, not the rent; one-to-one sessions with a mentor who has built a company; a room shared with the other selected teams; preparation for the stage; and Demo Day, where the audience is investors. After the programme the door stays open — the community of 55 startups, coaches and investors, and help with the next round.
UzCombinator was founded by Ulug'bek Ismatov, Laylo Ismailova and Murodillo Ismailov, who lead it as co-founders. The full team — programme managers, the CTO, research and design — is listed at uzcombinator.uz/team.
55 startups from 2 batches. Every company, with its sector and founders, is in the startup directory at uzcombinator.uz/startup-directory.
Starting up10
A startup is a young company testing an unproven business model and built for fast growth. A small business (a café, a shop, an agency) serves a known market for a known income; a startup tries to change a large market with technology or a new model, which is why it raises capital from investors. In Uzbekistan and in Tashkent the word usually means a team building an IT product or platform with plans beyond the local market.
The reliable test is demand confirmed with money or time: a pre-order, a payment, a waiting-list sign-up, or a 30-minute in-depth conversation with a customer. In the Uzbek market, Telegram channels and groups can reach hundreds of potential customers within a week. An opinion that it is a good idea is not validation; the act of buying is.
Yes. In many successful startups a non-technical founder understands the market, sales and the customer while a technical co-founder builds the product. No-code tools and freelancers are enough for the first stage; later you need a technical co-founder — in Uzbekistan hackathons, IT Park events and co-founder matching platforms are where they are found. The key is proving the product sells even before the technical founder is on board.
Usually less than expected. In Tashkent the first three to six months of an IT startup run mostly on the founders’ time, cheap tools (hosting, a domain, no-code) and a little advertising — a few hundred to a few thousand dollars. The large costs (salaries, an office) appear once the product sells or after investment. Accelerator stipends and grants exist precisely for this early period.
Yes, and it is common in Uzbekistan: many startups began at university. Students have hackathons, university incubators, the Youth Affairs Agency’s programmes and accelerators open to them. Age is not a barrier for an investor; what matters is the team, the market and the first results.
The order is simple: find a problem (one you feel yourself or one confirmed in 10–20 conversations), build the smallest working solution (an MVP), sell it to the first ten customers, then formalise the team and the legal entity. Tashkent has the infrastructure for this: IT Park residency, coworking spaces, accelerators and hackathons. Investors are shown first customers and growth, not an idea — so testing the market before registering is the right sequence.
An MVP (minimum viable product) is the smallest version that delivers the core value to a customer. Its job is not to look finished but to test a hypothesis. Many Tashkent startups ship an MVP in two to four weeks with no-code tools, a Telegram bot or a plain landing page. If an MVP is taking more than three months, it is not an MVP — cut it down.
The first ten customers are almost always found by hand: acquaintances, Telegram groups, LinkedIn, industry chats and direct messages. In Uzbekistan the channel that works for B2B startups is the founder personally reaching fifty companies; for B2C it is Telegram and Instagram. An advertising budget comes after the first customers, once a channel has proved it works.
It is possible but hard: investors and accelerators prefer teams of two or three, because one person cannot carry product, sales and operations at once. In Uzbekistan co-founders are found at hackathons, IT Park events and online matching platforms. Starting alone is possible; growing alone is rare.
Building a product without talking to customers, over-building the MVP, postponing sales, not putting the co-founder equity split in writing, and going to investors too early (or too late). Accelerator programmes in Tashkent, with a weekly goal and a mentor, are structured precisely to prevent these.
Registration, legal, tax10
For a startup that plans to raise investment, an LLC (MChJ) is the standard choice: splitting shares, bringing in an investor and becoming an IT Park resident are all straightforward through an LLC. A sole trader (YaTT) suits one person’s small services but cannot issue shares. Many Tashkent startups stay unregistered at the MVP stage and open an LLC once the first payments start.
IT Park Uzbekistan residency is the state’s special regime for IT companies: tax benefits for residents (extended through 2040), an IT Visa for foreign specialists, and easier export and international payments. A registered company whose income comes mainly from IT activity (software, IT services) can apply. For startups it is one of the most important advantages of building a company in Tashkent.
An idea itself is not protected — execution is. In practice: register the brand and logo as a trademark with the Intellectual Property Agency, formalise copyright in the software, and write into every employee and contractor agreement that intellectual property passes to the company. Reserve the domains (.uz and .com) early.
For a B2C product a public offer and a privacy policy on the site are enough — the user accepts them at sign-up. For B2B, a standard service agreement and electronic document exchange are used. If you handle personal data, take into account the requirements of Uzbekistan’s personal data law (local storage of data).
Reports are due from the day the LLC is opened, so yes — but not full-time. Many Tashkent startups use an outsourced accounting service: a fixed monthly fee covers reporting, payroll and taxes. After investment, tidy financial statements and a cap table are a requirement for investors too.
An LLC is registered online through the single portal of interactive state services and is usually done within one working day; the state fee is small and no strict minimum charter capital is required. You need a name, a legal address, and the founders’ and director’s details. A bank account and an electronic signature follow.
An ordinary LLC pays turnover tax or works under the general regime (profit tax, VAT), depending on its turnover. IT Park residents are under a different regime: exempt from most taxes, with relief on employees’ income tax as well. That is why IT startups usually apply for residency in their first year. Exact rates change — check with an accountant or a tax adviser.
Because a large share of startups close not over the market but over a dispute between founders. The agreement sets the shares, vesting (earning the shares over time), who decides what, and what happens if a founder leaves. In Uzbekistan it is formalised through the LLC charter and a founders’ agreement; investors ask about it at the first meeting.
Yes. Foreign nationals can be founders of an LLC; for IT Park residents there is an IT Visa and a simplified procedure for hiring foreign specialists. Tashkent is increasingly chosen by foreign founders in Central Asia for its affordable developers, a growing market and state support.
In Uzbekistan, for an LLC this means an amendment to the charter and a share purchase (or capital increase) agreement, often with a shareholders’ agreement. With international investors, SAFE or convertible-note documents also appear, frequently through a foreign holding (Delaware, for example). In every case the term sheet — the summary of key terms — is the first step.
Funding11
The sources: angel investors and angel clubs, local venture funds (Aloqa Ventures, SQB Ventures, MOST Ventures, Yoshlar Ventures, among others), the state fund UzVC, accelerators (through stipends and Demo Day), grants and competitions, and international funds. At the earliest stage accelerators and angels work best; venture funds come in for the following rounds.
These are investment stages. Pre-seed is the idea and MVP stage, usually $10–100k from angels and accelerators. Seed is the stage of proving product–market fit, in Uzbekistan typically $100–500k. Series A funds accelerating growth, in the millions, from venture funds. In Uzbekistan’s ecosystem pre-seed and seed deals are still the majority.
In an early round the usual range is 5–20%: accelerators take a smaller stake (often 5–10%), angels and seed funds 10–20%. The rule is that after the first two rounds the founders should still hold a large stake for control and motivation. Every later round dilutes again, so model it in advance.
An angel investor is an individual who puts their own money into early-stage startups — often an entrepreneur themselves. In Tashkent they are found through angel clubs (CS//Angels, for example), Demo Day events, accelerator communities and personal networks. The most reliable route is a warm introduction: reaching out through a founder or mentor who knows you works several times better than a cold message.
Both are instruments that let the valuation be set at the next round rather than now. A SAFE (Simple Agreement for Future Equity) means the investor gives money that converts into equity at the next round with an agreed discount or valuation cap; a convertible note is similar but carries interest and a maturity date. Uzbekistan’s LLC law is not fully adapted to these forms, so they are usually used through a foreign holding company.
Uzbekistan is a market of over 37 million people with a young population and a fast-digitising economy; the number and size of startup deals have grown in recent years, and IT Park residents’ exports rise year on year. It is also a high-risk asset class: most of a portfolio closes and a few winners carry the return. That is why experienced investors diversify and enter through accelerators or funds — at UzCombinator’s Demo Day, for instance, investors see a selected batch of startups in one day.
At the early stage, three things: the team (why you), the market (how big it is and how fast it grows) and traction (first customers, revenue, growth rate). Tashkent investors also ask about the plan beyond Uzbekistan, because the local market alone is small for a large exit. Numbers persuade, not a polished deck.
At the early stage a valuation is a negotiation, not a formula. Three methods are used in practice: deal-implied (how much equity for how much money), a revenue multiple (annual revenue × a sector coefficient) and the VC method (working back from an expected exit). Early-stage valuations in Tashkent typically fall between $300k and $2 million. For a first estimate there is a calculator at uzcombinator.uz/valuation.
There are: state programmes (the Youth Affairs Agency, IT Park initiatives), competitions by international organisations and development institutions, and corporate and university grants. A grant is money that takes no equity, but it comes with reporting and restrictions. Practical advice: treat a grant as a bridge to the first customers, not as the strategy.
Among local and regional funds are Aloqa Ventures, SQB Ventures, MOST Ventures, Sarmo Ventures, DOMiNO Ventures, IT Park Ventures, the state fund UzVC and Yoshlar Ventures; internationally, programmes such as 500 Global, Plug and Play and Alchemist Accelerator work with Uzbek startups. The full list, with each one’s focus, is at uzcombinator.uz/partners.
Ten to twelve slides: problem, solution, product, market size, business model, traction (numbers), competition, team, financial plan, the amount you are raising and what it buys. In the Demo Day format used in Tashkent this has to fit in three minutes — one thought per slide. Most of the time goes to the traction and team slides.
Accelerators & programmes10
An incubator is an open-ended environment that gives idea-stage teams workspace and advice, and usually takes no equity. An accelerator is a fixed-term intensive programme (typically six to twelve weeks): mentors, a weekly goal, a stipend and a Demo Day in front of investors, in exchange for a small stake. Tashkent has both; a team with a first product and a first customer fits an accelerator.
Most accelerators, including those in Tashkent, expect at least an MVP and first users: the programme runs six or seven weeks, and that time should go to selling the product, not building it from zero. A strong team can still be accepted at the idea stage. If in doubt, apply — even a rejection shows where you stand against the competing applications.
Demo Day is the closing day of an accelerator batch: each startup gives a three-minute pitch in front of a room of investors. Prepare one clear message, the traction numbers, the amount you are raising and why this team can do it. Demo Days in Tashkent draw thousands of guests and dozens of investors; at UzCombinator’s first batch several hundred thousand dollars were committed on the day itself. Rehearse the pitch more than thirty times — on stage the minutes vanish.
A mentor is someone who has built a company or has deep experience in the field; they do not decide for you, but they point out mistakes ahead of time and open doors (customers, investors, partners). In a good accelerator there is a weekly one-to-one with a mentor. In Tashkent the mentor network has formed around the accelerators, IT Park and industry communities.
A Startup School is an open educational programme on the basics of starting up: validating an idea, the MVP, first customers, the team and talking to investors. Unlike an accelerator it has no or light selection, is often free or online, and works as the step before applying to an accelerator. In Uzbekistan such programmes are run by accelerators, IT Park and universities.
With four questions: how much investment its alumni have raised (Demo Day results), whether its mentors have built companies themselves, how transparent the equity terms are, and whether a community remains after the programme. Several programmes run in Tashkent: UzCombinator (a 45-day programme with a stipend and a Demo Day), IT Park initiatives, Startup Garage, and regional streams of international programmes such as Plug and Play and 500 Global. Ask each for its numbers and talk to alumni.
Worldwide the usual range is 5–10% (Y Combinator’s standard deal takes 7%); some programmes take no equity and run on state or sponsor funding. The same range appears in Uzbekistan; UzCombinator agrees its stake with each startup individually and states the terms at the interview stage. Weigh what the stipend, the mentoring and the Demo Day are worth beyond the equity — that is how the deal is judged.
So that founders can focus on the product during the programme instead of rent and daily costs. UzCombinator gives each team a $1,000 stipend; other programmes vary in amount and form (a grant, workspace, services). A stipend is not an investment — it is part of the programme and is not repaid.
A Founders Camp is a short (usually one-week) residential intensive for founders: sessions with mentors, team work and pitch practice. UzCombinator runs Founders Camps in the regions between batches, so teams outside Tashkent prepare for the programme too. Participants receive a certificate that can be checked at uzcombinator.uz/verify.
Yes — for two things: finding a co-founder, and building a prototype in 48 hours to show an idea to people for the first time. In Tashkent, IT Park, universities and corporations run hackathons regularly; winners often get a referral to an accelerator or a small prize. A hackathon is not a startup, but it can be where one begins.
Product & growth10
Product–market fit is when the product meets a real market need so well that customers start coming on their own. The signs: users come back (retention), recommend it, sales turn from pushing into being pulled, and a large share of users would be upset if the product disappeared. Spending on growth before that is pouring water into a leaking bucket.
Start from the value the customer gets, not from your cost, and test early: three tiers, an annual discount, a free trial. In Uzbekistan willingness to pay differs sharply by sector — B2B companies can pay international-level prices, while B2C expects cheap subscriptions and local payment systems (Payme, Click, Uzum). Raising prices is often the easiest source of growth.
Because Telegram is the most used app in Uzbekistan, and a bot is a product that launches in days with no mobile app and no app-store listing. Through a bot you can test demand, take payments and talk to users. Many startups later move to web and mobile apps, but find their first thousand users in the bot.
First measure where they leave (cohort analysis), then simplify the first experience: the shorter the path from sign-up to value, the more people stay. Talk to the users who left — they give the most honest answers. Retention is the startup’s most important metric because it is product–market fit itself.
The first version — yes: landing pages, forms, spreadsheets, automation and Telegram bot builders get many ideas into testing within a week. The limit is scale and proprietary technology: once users multiply or the product itself is the technology, code is needed. Starting with no-code and continuing with code is a normal path for Tashkent startups.
A few, but every week: active users (DAU/WAU/MAU), retention, revenue (MRR — monthly recurring revenue), customer acquisition cost (CAC) and customer lifetime value (LTV), plus burn rate (monthly spend) and runway (how many months the money lasts). Investors in Tashkent ask for exactly these numbers.
For B2C: Telegram (channels, bots, ads), Instagram and TikTok; for B2B: direct sales, LinkedIn and industry events. Search (Google, SEO) is growing in Uzbekistan too — especially for “in Tashkent” and “in Uzbekistan” queries. Master one channel deeply, then move to the second; a little everywhere yields nothing anywhere.
It depends on the stage. A startup that has raised investment and is taking a large market puts growth first; for one without investors or in a small market, early profitability is the guarantee of survival. In Uzbekistan capital is still expensive and limited, so many founders aim to reach “default alive” — living on their own revenue — earlier.
Each has its own difficulty. B2C has a large, young audience but low willingness to pay and expensive acquisition; B2B has a long sales cycle and few customers but a high ticket and stable revenue. In recent years both models have worked in Uzbekistan across fintech, edtech, e-commerce and logistics. The choice depends on which customer the team understands better.
Once the product and market are clear — but the domain and core pages should be structured right from day one: a fast site, one clear topic per page, the words customers search for (“in Tashkent …”, “in Uzbekistan …”) and useful content. SEO pays off after months, so it complements advertising over the long term rather than replacing it.
Team & founders10
The best co-founders come from people you have worked or studied with. Failing that: hackathons, IT Park and accelerator events, industry Telegram groups and co-founder matching platforms (UzCombinator’s site has a co-founder matching section too). Before formalising anything, do a small project together for four to eight weeks — it is the cheapest test.
Vesting means a founder’s or employee’s equity passes to them over time (usually four years with a one-year cliff) rather than at once. It protects the company from someone leaving early and keeps the others motivated. Investors in Tashkent, too, require vesting before funding a team that lacks it.
Yes, though the mechanism is not as smooth as in international practice: the concept of an option is not fully formed in LLC law, so startups usually use an agreement to grant shares in the future or an ESOP through a foreign holding. What matters is making the promise written and countable: how much, when, on what conditions.
It can — many Uzbek startups work remotely with staff from the regions and abroad. But at the early stage having the founders in one room speeds decisions up, which is why accelerators (including UzCombinator in Tashkent) bring the teams into one office for the programme. The formula: founders together, the team wherever it works best.
Two or three advisors who know the field deeply add a lot at the early stage: they open doors and guard against mistakes. In international practice an advisor gets 0.25–1% with one- to two-year vesting; the same approach is used in Uzbekistan. Agree in writing what is expected of each (hours per month, which introductions).
Most experienced investors recommend an equal or near-equal split — not 70/30 because “the idea was mine”. Equity is for the years of work ahead, not for the idea. Always with vesting: the shares are earned over three to four years with a one-year cliff, so a founder who leaves early does not walk away with a full stake. Put it in a written agreement.
For the work the founders cannot do themselves and that is holding growth back — usually a developer or a salesperson. Managers and senior titles are not needed at the early stage. Uzbekistan’s developer market is competitive, so small startups offer equity (options) alongside salary. The first five hires set the culture — do not rush them.
After raising investment — yes, even if modest: a hungry founder makes bad decisions. Investors in Tashkent consider this normal, expecting only that the amount is below market rate and visible in the budget. Before investment most founders live on freelance work or savings — a period to keep as short as possible.
First, look at the written agreement — a good founders’ agreement is written for exactly this (who has the casting vote, how a departure works). Second, bring in a mentor or a neutral adviser. Third, resolve it fast: a startup with a lingering dispute loses customers and staff. Often one founder leaving with their vested share is what saves the company.
A startup is a marathon: sleep, exercise and at least one day off a week affect the results directly. Isolation is the main cause of burnout, which is why a founders’ community (accelerator alumni, founder meetups in Tashkent) matters. Talk openly with a mentor — they have walked the same road.
Uzbekistan’s ecosystem10
Fast-growing and young: IT Park Uzbekistan, founded in 2019, has gathered thousands of resident companies and IT exports rise every year; accelerators, venture funds, angel clubs and state programmes have appeared in Tashkent; the first sizeable startups have formed in fintech, edtech, e-commerce and logistics. There are gaps — late-stage capital and experienced founders are still scarce — but the direction is clear.
IT Park Uzbekistan is the state technopark and IT-industry development operator founded in 2019: tax benefits for residents, office space in Tashkent and the regions, education programmes, an IT Visa and export support. For startups it is the ecosystem’s central hub — most accelerators and funds work with it.
Fintech and payments, e-commerce and marketplaces, edtech, logistics and mobility, agritech, HR and jobs, and lately AI-based services (speech, text and translation products for the Uzbek language). The digitisation of state services is opening room for govtech as well.
At the early stage a coworking space is the cheapest option: in Tashkent, IT Park’s spaces and private coworkings (SPACE Coworking, for example) offer desks and meeting rooms for a monthly fee. During an accelerator programme teams usually sit in the programme’s office. A dedicated office comes once the team passes eight to ten people, after investment.
Junior developers are plentiful; experienced (senior) ones are scarce and contested — many work remotely for foreign companies. Salaries are well below international levels but rise year on year. Startups attract senior developers with a combination of salary, equity and an interesting problem; IT Park residency helps with payroll tax as well.
A large, young domestic market (the country has over 37 million people, half under thirty), an affordable and growing developer pool, IT Park benefits, proximity to the Central Asian markets and the state’s attention to startups. Tashkent concentrates accelerators, coworking spaces, hackathons and investors in one place — the people a startup needs are within a few kilometres of each other.
It can, and it is happening more: IT Park’s regional branches, universities and events such as Founders Camp are growing teams in Samarkand, Fergana, Bukhara and other regions. The difference is that investors and mentors are concentrated in Tashkent, so regional teams come to Tashkent for an accelerator programme and continue remotely afterwards.
Accelerator Demo Days, IT Park and university hackathons, international technology forums and expos, investor meetings, industry meetups and open talks for founders. Most events are announced through Telegram channels; UzCombinator also runs open talks and Founders Camps.
There are: local companies with millions of users have formed in fintech and payments, e-commerce, edtech and logistics, and several have taken foreign investment and entered regional markets. At the early stage, dozens of startups that went through accelerators have raised their first investment — the companies in UzCombinator’s startup directory, for instance, are listed at uzcombinator.uz/startup-directory.
The IT Park regime (tax benefits, an IT Visa), the state venture fund UzVC, the Youth Affairs Agency’s programmes and grants, university incubators, and support for accelerators — UzCombinator’s programme, for example, runs with the support of the Youth Affairs Agency and in partnership with the Yoshlar Ventures fund. Company registration and reporting are mostly online as well.
Going global10
Once product–market fit is proven at home and the product’s fit for another market has been tested. Uzbekistan is good for first customers and testing but small for a large exit — which is why investors ask for a regional plan. The usual path: Uzbekistan → Central Asia (Kazakhstan, Kyrgyzstan) → the CIS or the Middle East → global.
International investors, SAFEs and options need a familiar legal environment; Delaware C-Corps, Estonian, Singaporean or UAE companies serve that purpose. The usual structure: a foreign holding for investment and shares, an Uzbek LLC (an IT Park resident) for the team and operations. It adds cost and reporting, so it is right to do it when a real foreign investor appears.
For IT Park residents, export contracts, foreign-currency receipts and international payments are simplified, so a startup heading for export becomes a resident first. The main product-export questions are accepting international payments (systems like Stripe may not work directly — a holding or an intermediary is needed), English-language support and data-residency requirements.
Very: investor materials, the product interface, support and documentation are expected in English. At least one founder should be able to pitch fluently in English. English levels among young founders in Uzbekistan are rising fast; accelerators run pitch practice in both languages.
An exit turns investors’ and founders’ shares into cash: selling the company (M&A), listing it (IPO) or selling the stake to a later investor. In Uzbekistan the main form so far is acquisition by a strategic buyer (a local bank, telecom, e-commerce player or a foreign company); IPOs are still rare. That is why investors look at regional growth — it widens the pool of potential buyers.
Central Asia has over 80 million people, with Uzbekistan the largest and youngest market. Kazakhstan leads on willingness to pay and investor networks; Uzbekistan on volume and growth rate. A startup covering two or three countries with one product is far more attractive to an investor, and many funds back precisely a regional strategy.
Yes — the country is not a barrier, but the competition is global. With strong traction, a clear English pitch and a foreign holding ready, applying makes sense. In practice many teams go through a local accelerator first (UzCombinator in Tashkent, for example) and then on to 500 Global, Plug and Play, Alchemist or YC — the local programme prepares them with numbers and a pitch.
They do, and increasingly: regional funds focused on Central Asia, investors from the CIS and the Middle East, international accelerators and development institutions. They tend to prefer teams with a regional plan and a foreign holding. Demo Days and accelerator networks in Tashkent provide the first meeting with foreign investors.
Beyond language and currency: local payment systems, legal requirements (data, licences), local marketing channels and often a local team or partner. For Kazakhstan and Kyrgyzstan, Russian and local payments are the first step; for the Middle East or Europe a full separate market-entry plan is needed.
Yes — much of Uzbekistan’s IT export works exactly this way: a Tashkent team delivers software and services to foreign customers. For a startup this also opens a global-first model: a product built for the international market from day one, developed by an affordable, capable Tashkent team. IT Park residency and the arrangements for receiving foreign payments are the foundation.
Glossary10
Pre-money is the company’s valuation before the investment; post-money is the valuation after it (pre-money + the money invested). The investor’s stake = money invested ÷ post-money. For example, $250k into a $1 million pre-money valuation gives a $1.25 million post-money and a 20% stake.
A cap table (capitalisation table) shows who owns what share of the company: founders, investors, the employee option pool. It is updated after every round and is one of the first documents investors ask for. A simple spreadsheet is enough to start — what matters is that it always matches reality.
CAC is the cost of acquiring one customer; LTV is the revenue one customer brings over their lifetime. In a healthy business LTV is at least three times CAC, and CAC pays back within twelve months. The ratio tells you whether marketing spend is justified or a channel is not working.
A term sheet is a short, usually non-binding document with the key terms of an investment: amount, valuation, stake, investor rights (information, right of first refusal, liquidation preference) and closing conditions. It comes before the legal documents; once the term sheet is signed, the detailed negotiation begins.
Bootstrapping is growing without outside investment, on your own money and customers’ revenue. The advantage is full control and no dilution; the drawback is slower growth. Because capital is limited in Uzbekistan, many startups start by bootstrapping and look for investors only when capital is needed for growth.
Burn rate is how much money a startup “burns” per month (spend minus revenue). Runway is how many months the current cash lasts at that rate. The rule: start raising the next round with nine to twelve months of runway left, not six — closing a round takes three to six months in Tashkent too.
MRR is monthly recurring revenue (the sum of subscriptions and regular payments); ARR is annual recurring revenue (MRR × 12). Unlike one-off sales they show stable revenue, and they are the core metric for valuing SaaS startups. Investors look at MRR’s month-on-month growth rate.
Traction is the evidence that a product really works in the market: user numbers and growth, revenue, retention, contracts, a waiting list. For an investor it is the third core criterion after the team and the market; however good the idea, without traction it remains a hypothesis.
Dilution is the fall in existing owners’ percentage when new shares are issued (an investment round, an option pool). It is normal: a smaller percentage of a more valuable company. Founders should model how much they dilute in each round in advance — so that successive rounds do not cost them control.
A pivot is a change of a startup’s core direction — a different customer segment, product or business model — while keeping what has been learned. It is needed when retention will not grow, when customers use the product for a different purpose, or when the market turns out to be too small. A pivot is not a defeat; many large companies emerged from one.