New Presidential Decree on Uzbekistan's Startup Ecosystem
The long-awaited presidential decree regulating the startup ecosystem was announced on October 14. While not all issues have been fully resolved, the decree offers significant support and presents new opportunities for the growth of the startup ecosystem.
The following key points stand out:
- A "Digital Startups" program will be introduced to provide comprehensive support for startup projects.
- Startups that attract investment from major foreign venture funds will receive additional investment of up to $100,000.
- The IT Park will allocate unsecured loans to startups at an interest rate not exceeding 17.5%.
- Startup founders will be granted IT visas.
- IT Park Uzbekistan will establish a new venture fund with a capital of $10 million.
- UzVC will be restructured as a "Fund of Funds" with a capital of $12.2 million.
- State banks and economic societies will be permitted to create venture funds.
- State organizations will be allowed to sign contracts with startups for up to $42,500 in a fiscal year.
- A special legal regime (Regulatory Sandbox) will be introduced from 2025 to 2027 as part of the Digital Startups Program, supporting instruments like SAFE Notes and Convertible Notes.
- By February 2025, a law "On Alternative Investments" will be developed.
This decree is expected to significantly boost Uzbekistan's startup sector, driving innovation and strengthening the country's tech ecosystem.
