A new funding program for startups will be launched
Uzbekistan will introduce new mechanisms to finance startups and incentivize private investors.
Бу Президент Шавкат Мирзиёевнинг жорий йил 27 августдаги «Ўзбекистон Республикаси Президентининг тадбиркорлар билан VI очиқ мулоқотида белгиланган вазифаларни амалга ошириш чора-тадбирлари тўғрисида»ги фармонида белгиланган.
These new measures will serve to further develop the country's startup ecosystem. Within this ecosystem, IT Park Uzbekistan will support technological projects, develop the venture market, and help form the necessary infrastructure for collaboration between startups and investors.
According to the document, the "Future Entrepreneur" program will be implemented from 2027 to 2030. Under the program, the UzVC National Venture Fund will finance up to 30 startups in 8 priority areas based on an open competition.
Each project can receive up to 5 billion soums in investment. Financing will be provided for a 3-year term as an interest-free, unsecured convertible loan or SAFE agreement.
The state's share in a startup will not exceed 49 percent. The founders will subsequently have the right to purchase this share at its market value. It is planned to allocate an initial 150 billion soums from the state budget for the program in 2027.
The "Future Entrepreneur" program will cover startups in the fields of electrical engineering, mechanical engineering and instrumentation, pharmaceuticals, the chemical industry, construction materials, and water and energy-saving technologies.
Agriculture and agrotechnologies, as well as aerospace, are also included among these fields. Furthermore, a special "regulatory sandbox" legal regime will be applied to the program's participants.
Relevant government agencies and industry organizations will assist startups in implementing pilot projects with enterprises in their sector and in securing order contracts.
The decree also introduces a new mechanism to incentivize the attraction of private capital into the startup ecosystem.
An individual who invests in a startup registered on the Startup Base single electronic platform, including through a SAFE agreement or a convertible loan, can obtain the status of "Startup Investor" (Business Angel).
If an investor holds a stake in a startup for at least three years and then sells it, the income from the sale of that stake will be exempt from personal income tax.
The new mechanisms are expected to expand funding opportunities for startups, increase the participation of private investors in the ecosystem, and help bring technological projects to market more quickly. The decree entered into force on August 28 of this year.
A. RUSTAMOV, UzA
