Tashkent, Uzbekistan (UzDaily.com) -- The amount of venture transactions in Uzbekistan in 2023 amounted to more than US$6 million, which is twice as high as in 2022, according to data from experts from KPMG Caucasus and Central Asia.

The country’s venture market ecosystem continues to demonstrate active growth. As part of cooperation with the EA Group and BGlobal Ventures holding, as well as with the participation of KPMG Caucasus and Central Asia, Crunchbase and the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan, a large-scale study of the venture capital market in Central Asia and the Caucasus was conducted.

According to the study, the total volume of venture deals in the region in 2023 was more than US$110 million. However, despite noticeable growth, the ecosystem remains small, indicating significant potential for further investment.

The majority of deals in Uzbekistan are concentrated in the early stages - pre-seed (22%) and seed (51%) rounds. There is an expansion at the following stages - 27% of transactions were completed in Pre-series A (13.5%) and Growth (13.5%) rounds. These dynamics highlight Uzbekistan’s evolving investment landscape.

The venture market of Uzbekistan continues to attract the attention of both local and foreign investors, and the development of the legislative framework for venture investment creates a more transparent environment and makes the market more attractive to investors.

In the field of venture investment in Uzbekistan, startups in the FinTech field are of particular interest. This direction leads both in terms of investment volume (US$2,750 thousand) and in the number of transactions (12). In addition, LogTech projects (US$1,775 thousand) and business management (US$975 thousand) are also highlighted among the priority areas.

When analyzing venture capital investment transactions by type of investor, it turned out that in 2023, 60% of all investments came from international investors. Government organizations predominate among local investors. The average transaction size of venture funds in 2023 was US$204 thousand.

According to the study, the startup scene in the region has expanded significantly over the past five years, indicating a mature ecosystem with numerous startups, funds, and venture capitalists and angels. This process reflects a more mature startup community and a shift from quantity to improved quality of product development and business aspects compared to five years ago.

“Despite the intense growth in the volume and number of venture deals in recent years, our region lacks a critical mass of active business angels and venture funds at both early and late stages to satisfy the existing demand for investment from startups,” he emphasized. CEO of BGlobal Ventures, Abay Absamet.