From idea to scaling into new markets: new government measures to support startup development

On February 11, the President of the Republic of Uzbekistan enacted Resolution No. PP–59 titled “On measures to implement a comprehensive startup support ecosystem.” This document lays out a structured framework for the development of startups — from conception to international growth — thereby clarifying and making this pathway more predictable.

By the year 2030, Uzbekistan aims to elevate its technological entrepreneurship to a new level. The country intends to support approximately 5,000 active startups and attract a minimum of $2 billion in venture capital investment — funds that facilitate the growth and expansion of companies beyond the local market.

A distinct benchmark is set for the establishment of robust technology companies: 500 startups valued at over $1 million, 100 valued above $10 million, and at least 25 exceeding $100 million. Concurrently, it is anticipated that over 20,000 jobs will be created, and at least 400 projects are expected to penetrate international markets.

The program is divided into four stages, each aligned with a specific phase of startup development and equipped with targeted support mechanisms.

Stage One — Idea Formation

The journey begins with an individual possessing a product idea but lacking clarity on how to validate it or where to take it. Consequently, the program initiates not with funds or investments, but with the establishment of a supportive environment.

Beginning in the 2026–2027 academic year, schools, colleges, and technical institutes will implement a regular “Skills and Business Hour” format at least twice monthly. These sessions will educate participants on business thinking, the stages of developing a viable startup idea, and the process of transforming it into a project.

The subsequent step is the “Best Startup Idea” competition. District-level winners will receive up to 5 million UZS, while regional winners will be awarded up to 10 million UZS. Projects will benefit from mentorship provided by the Youth Affairs Agency and IT Park Uzbekistan, ensuring that ideas receive both guidance and initial funding.

Simultaneously, a national competition called “Most Innovative Idea” will be initiated in public universities. Winners will be granted 100 million UZS. The national stage will encompass 10 fields, with a total prize fund of 10 billion UZS supported by the Fund for Financing Science and Supporting Innovations.

This framework also incorporates a crowdsourcing mechanism on the Startup Base platform. Government agencies will present real-world challenges and conduct open competitions, while the procurement of effective solutions will also occur through the platform.

From the beginning, startups can directly address specific market needs.

If a project demonstrates its potential at ideathons or hackathons, state-supported venture funds may offer convertible loans of up to $20,000, contingent upon the team’s participation in incubation or acceleration programs. Furthermore, through the “Digital Startups” initiative, grants of up to $10,000 are accessible for digital projects. At this juncture, the idea not only receives acknowledgment but also acquires resources to advance toward development.

Stage Two — Product Development

Once the concept is defined and the team is prepared to proceed, the next consideration is where to create the product.

Beginning in 2027, research and development centers will be established, featuring laboratories, 3D printers, digital infrastructure, coworking spaces, legal assistance, and testing facilities. These centers will offer environments for development and testing.

An R&D voucher system will be implemented: the government will subsidize up to 50% of expenses for MVP development and testing, with a cap of $50,000 per project. Support will be allocated annually to a select number of promising startups, ensuring a commitment to quality.

Starting September 1, 2026, the “Universities as Startup Generators” program will commence. Universities will create incubators and student accelerators, launch internship and international exchange programs, and will be permitted to invest up to $20,000 in student and research-driven startups.

Additionally, commencing in 2026, the “Young Entrepreneurs” championship will take place. Consequently, up to 100 projects may secure investments of up to 1 billion UZS each. Expenses related to marketing and promotion will be funded, and winners may be nominated for state honors, including “Faol tadbirkor” and “Uzbekiston belgisi.” This phase signifies the shift from prototype to a market-ready product.

Stage Three — Launch and First Sales

When a startup has a finished product or MVP, a new phase begins. During the development stage, the emphasis was on creating and testing technology. With entry into the market, operational challenges arise: company registration, selection of a tax model, accounting, contracts, employee hiring, and engagement with initial customers.

Many projects encounter delays at this stage. To address these risks, the government is implementing additional mechanisms to assist startup teams in product development and commercialization.

Beginning April 1, 2026, participants in the “Digital Startups” program will automatically obtain resident status at IT Park Uzbekistan without the need for minimum export requirements. This change allows access to a simplified tax regime and existing benefits without the prerequisite of demonstrating export revenue.

Through the unified electronic platform startupbase.uz, participants can receive reimbursement for up to 50% of costs associated with international accelerators, training, and certification, with a maximum reimbursement of $20,000. Additionally, expenses related to patenting and intellectual property registration will also be covered, which is vital for entering competitive markets.

The prize fund for the President Tech Award is set to increase from $1 million to $5 million, with additional funds allocated as investments to support company growth.

A new international competition titled “Land of Startups,” featuring a $5 million fund, will also be introduced. This initiative aims to attract foreign startups and founders to establish and develop their projects in Uzbekistan.

Liquidity poses another challenge at the launch stage. Even with a signed contract, startups frequently experience delays of several months for payment. Under the new regulations, projects listed in the registry of successful startups on startupbase.uz will qualify for advance payments in public procurement contracts: 50% for contracts up to 500 million UZS and 30% for larger contracts.

The infrastructure surrounding startups will also be enhanced. Interest-free loans of up to 5 billion UZS for a duration of up to five years will be available to startup studios, incubators, and acceleration centers. Startup clubs will be created in various regions, hosting monthly meetings where teams can receive consultations and assistance in engaging with government entities. Furthermore, the annual “Startup Expo” exhibition will act as a crucial networking opportunity with investors, funds, and major corporations.

At this stage, the company transitions into full commercial operations. The program emphasizes minimizing operational risks and fostering conditions for sustainable early sales.

Stage Four — Scaling and International Expansion

At this juncture, the startup has navigated its most difficult phase: the idea has been validated, the product has been developed, and initial sales have been made. The company has a clear understanding of its economics, possesses clients, a team, and revenue. The strategic consideration now shifts to whether to scale within the domestic market or pursue international expansion.

For many technology startups, entering international markets is not merely an ambition but a necessity.

The domestic market is constrained; to boost revenue and draw in substantial investment, companies need to create foreign legal entities, enter into international contracts, and register intellectual property in different jurisdictions.

Consequently, during the scaling phase, additional mechanisms come into play: startups listed in the registry of successful projects on startupbase.uz and without tax liabilities are permitted to transfer up to $500,000 annually to foreign accounts without needing separate approvals.

Additional Support Measures

In addition to direct support instruments for startups, the program encompasses initiatives that enhance the broader ecosystem.

Starting April 1, 2026, venture funds will be eligible to acquire IT Park resident status regardless of their registration location or physical presence. Previously, residency was restricted to companies situated within IT Park or its branches.

Another focus area is crowdfunding. The objective is to establish clear regulations that outline crowdfunding, its various models, and the rights and responsibilities of both platforms and participants. This will allow startups to legally secure funding through digital platforms where individuals collectively finance projects, thereby creating an additional source of early-stage capital.

A Financial and Legal Advisory Service will also be introduced. For 12 months following their registration on startupbase.uz, startups will receive complimentary assistance on corporate structuring, tax models, international contracts, and the registration of intellectual property abroad. This initiative aims to mitigate the risk of expensive legal errors during critical phases.

The Startup Base platform will maintain a registry of successful startups. Inclusion in this registry will serve as formal acknowledgment of a company’s status and grant access to a variety of support instruments.

Plans are also underway to develop a specialized legal framework for startups. This involves examining international best practices, facilitating open discussions with ecosystem participants, and drafting legislation that will clarify the rights and responsibilities of stakeholders, the roles of government entities, and support mechanisms.

Collectively, these initiatives bolster the ecosystem at a systemic level: generating new financing sources, attracting international projects, and establishing sustainable mechanisms for the technological sector.