VENTURE CAPITAL IN UZBEKISTAN: ECOSYSTEM ASSESSMENT, KEY CHALLENGES, POLICY IMPLICATIONS
DOI:
https://doi.org/10.5281/zenodo.17453471Keywords:
venture capital, Uzbekistan, innovation policy, startup financing, fund-of-funds, co-investment, emerging markets, entrepreneurship ecosystem.Abstract
The research investigates how the venture capital ecosystem has evolved in Uzbekistan by studying its present
structure, operational problems, and possible policy solutions. The essential role of venture capital in driving innovation
and business growth is widely accepted, but Uzbekistan experiences limited VC activity because it operates as an
emerging market. The study examines Uzbekistan's venture capital development through international data and 2024
KPMG and RISE Research report findings to identify major institutional players and current investment patterns. The
main obstacles consist of restricted investor exit possibilities, inadequate financial knowledge and venture understanding,
insufficient market readiness for new products, and incomplete legal and tax systems. The research compares
Israel, Singapore, and South Korea to identify effective co-investment schemes, fund-of-funds structures, and fiscal
incentive programs. The paper proposes a phased reform strategy, recommending legal and tax reforms, public-private
co-investment mechanisms, improved exit infrastructure, and enhanced ecosystem capacity building. The research
shows that Uzbekistan can accelerate sustainable private-sector venture capital market development through specific
initiatives. This will drive long-term innovation and economic diversification.
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