What prevents Uzbek startups from growing into large companies?

Problem Three: Overstaffed Teams at the Start

Founders coming from corporate backgrounds often try to replicate familiar management models in their startups: they hire large teams, build hierarchies, and create departments. But a startup is not a corporation. At an early stage, speed and the quality of interaction between people matter far more than headcount.

“It’s not about how many people you have, but about their quality and how they work together. You can’t just gather a group of strong specialists in one room and expect results,” Kurbanov says.

Experience shows that teams of two to five people are more effective in the beginning. There are fewer approvals, decisions are made faster, and communication is simpler. Scaling the team makes sense only after a working product is found and demand is validated.

Problem Four: A Shortage of Leaders with Relevant Experience

Uzbekistan lacks managers who have gone through the full journey from an early-stage startup to a scalable company. Most experienced professionals come from corporations or government institutions, where the decision-making logic is fundamentally different.

Yet it is precisely early-stage experience in a growing company that teaches how to build a business from scratch. One year in a five-person startup that scales to fifty provides far more relevant expertise than three years in a well-established organization.

“Everyone now highlights ‘ex-Google’ or ‘ex-Yandex’ in their profiles. But if a person joined a large company only a year ago, they did not witness its growth. Their background is in operating within a system, not in building one,” the investor notes.

Uzbekistan and Kazakhstan: A Five-Year Gap

Kazakhstan began developing its venture ecosystem earlier. The Astana International Financial Centre (AIFC) allows companies to register under English law, which simplifies attracting foreign investment and is familiar to international funds.

International accelerators such as Google for Startups and 500 Startups appeared in Kazakhstan sooner. Many regional headquarters of tech companies are also located in Almaty or Astana.

Uzbekistan began developing comparable infrastructure later, but the situation is changing rapidly. In 2025, the Enterprise Uzbekistan center was launched in the country, whose residents can operate under a legal regime based on English law. This is expected to simplify cooperation with foreign investors and increase the confidence of international funds. At the same time, specialists with international experience are returning, the first local funds are emerging, and a professional community is taking shape.

“Give Uzbekistan five years, and you’ll see results. The right people are returning, launching startups, and taking on important roles. We’re only just beginning,” Kurbanov says.

What the Ecosystem Needs

Market participants highlight several key factors for further development.

More players. Healthy competition among startups, funds, and accelerators creates pressure to improve quality. As long as there are few players, the market remains “greenhouse-like.”

Stronger connections between participants. Startups need access to investors, investors need access to strong projects, and both sides require clear and predictable rules from the government.

A culture of speed. “In business, everything needs to be done quickly. Everyone thinks, but only a few act fast,” Kurbanov says.

Tolerance for failure. In mature markets, the failure of a startup is considered a normal part of an entrepreneur’s journey. In Uzbekistan, failure is still often seen as a personal defeat, which reduces willingness to take risks.

Conclusion

Uzbekistan’s venture market is still in a formative stage. The first startups have already gone through the full cycle—from launch to scaling or closure—creating a base of local experience that can now be analyzed.

The typical mistakes (launching without industry expertise, co-founder conflicts, premature team expansion) are common across emerging markets worldwide. Understanding them can save time and resources for the next generation of entrepreneurs.

The key question is whether the ecosystem can build a critical mass of participants and develop infrastructure comparable to neighboring markets. The first meaningful results will become visible within the next three to five years.