Key Takeaways
- • Uzbekistan's venture capital market expanded 539.7% in H1 2026 compared to H1 2025, positioning the country as the fastest-growing VC market in the region and outpacing Kazakhstan, which saw VC inflows decline to $71 million in 2024.
- • The country hosts over 400 active startups and more than 15 active venture funds, including UzVC, SQB Ventures, AloqaVentures, IT Park Ventures, Yoshlar Ventures, Imkon Ventures, and Sarmo, alongside new entrants like DOMiNO Ventures launching a $20 million fund.
- • Early exit signals are emerging across the ecosystem, though exits remain structurally constrained—a critical gap between capital availability and successful liquidity events that investors must monitor closely.
- • Capital concentration remains concentrated in a handful of large deals rather than distributed across the broader ecosystem, with only a small share of startups successfully raising venture capital despite increased fund availability.
- • Policy reforms, IT Park leadership in attracting foreign venture capital, and the ecosystem's shift toward founder pipeline development and execution support are reshaping Central Asia's startup architecture beyond pure capital deployment.
Summary
Uzbekistan has emerged as Central Asia's venture capital leader, recording exceptional growth that substantially outpaces regional peers. According to published figures, venture capital investment in Uzbekistan increased 539.7% in the first half of 2026 compared to the same period in 2025, marking a dramatic acceleration. This growth trajectory contrasts sharply with Kazakhstan, where VC inflows declined to $71 million in 2024 from $80 million the previous year, underscoring Uzbekistan's regional dominance.
The market infrastructure has matured considerably. More than 15 active venture funds now operate within Uzbekistan, including established players such as UzVC, SQB Ventures, AloqaVentures, IT Park Ventures, Yoshlar Ventures, Imkon Ventures, and Sarmo. The ecosystem expanded further in 2026 with the launch of DOMiNO Ventures, an international private VC fund valued at $20 million that connects local startups to global capital. The IT Park has played a central role in attracting foreign venture funds and business activity, serving as the primary institutional anchor for market development.
However, headline growth numbers mask structural constraints facing investors. While Uzbekistan hosts over 400 active startups, only a small share successfully raise venture capital, revealing deeper ecosystem gaps beyond mere capital availability. Additionally, exits remain limited—a critical pressure point that regional investors and founders are navigating. Capital concentration persists in a handful of large deals rather than distributing broadly across early-stage companies. According to ecosystem participants including Yoshlar Ventures, the region's maturation depends not solely on capital deployment but on founder pipeline development, execution support, and market infrastructure. Regional venture funding reached approximately $320 million in 2025 across Central Asia, yet early liquidity signals from Uzbekistan remain sparse relative to capital deployed, signaling that exit pathways and investor returns remain a key strategic challenge for the market's evolution.
The market infrastructure has matured considerably. More than 15 active venture funds now operate within Uzbekistan, including established players such as UzVC, SQB Ventures, AloqaVentures, IT Park Ventures, Yoshlar Ventures, Imkon Ventures, and Sarmo. The ecosystem expanded further in 2026 with the launch of DOMiNO Ventures, an international private VC fund valued at $20 million that connects local startups to global capital. The IT Park has played a central role in attracting foreign venture funds and business activity, serving as the primary institutional anchor for market development.
However, headline growth numbers mask structural constraints facing investors. While Uzbekistan hosts over 400 active startups, only a small share successfully raise venture capital, revealing deeper ecosystem gaps beyond mere capital availability. Additionally, exits remain limited—a critical pressure point that regional investors and founders are navigating. Capital concentration persists in a handful of large deals rather than distributing broadly across early-stage companies. According to ecosystem participants including Yoshlar Ventures, the region's maturation depends not solely on capital deployment but on founder pipeline development, execution support, and market infrastructure. Regional venture funding reached approximately $320 million in 2025 across Central Asia, yet early liquidity signals from Uzbekistan remain sparse relative to capital deployed, signaling that exit pathways and investor returns remain a key strategic challenge for the market's evolution.
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