Tajikistan is actively joining the global startup movement, and a prime example of this is the upcoming Startupstan Summit 2024, set to take place in Dushanbe on October 12-13.  We spoke with one of the main organizers, Dilshod Jurazoda, to learn more about what to expect from the summit and which trends will shape the future of startups in the country.

A platform for startups and investors

Startupstan Summit 2024 will serve as a significant platform for startups, entrepreneurs, and investors, offering opportunities to showcase projects and gain support from leading investment funds.  Fifteen startups from Tajikistan, Georgia, Azerbaijan, Uzbekistan, Kazakhstan, and Kyrgyzstan will participate.  One of the key features of the summit is the pitching sessions, which will be available not only for startups but also for investment funds, allowing all participants to present their ideas and explore collaboration opportunities.

Among the venture capital funds interested in the region are White Hill Capital from Kazakhstan, Aloqa Ventures from Uzbekistan, and Plug and Play, a renowned accelerator program from the United States.  These funds are actively seeking promising investment opportunities and are ready to support young projects.

Support and partnerships

The main organizer of the event is the State Committee on Investment and State-owned Property Management (GosKomInvest).  Its business incubator plays a key role in organizing the summit, with significant assistance from other partners, such as Tojinvest and private companies like Tcell, which is a sponsor, and FIFTYFIVE GROUP, a supporter of the initiative.

The summit’s main donor and international partner is USAID, which has been heavily supporting venture capital development in the region. Tajikistan Venture Capital also plays a crucial role in promoting venture investment in the country by bringing together company founders, entrepreneurs, investors, mentors, and experts on a single platform.

Successful projects

One of the first steps we took was clearly distinguishing between traditional businesses and startups. In startups, we invest with the understanding that there is no guaranteed return.  Moreover, a startup’s essential element is a high-tech idea with rapid growth potential, attracting investment, and of course, led by young, ambitious founders.

In Tajikistan, there are around 100 startups, of which approximately 80% may not survive, 20% will transform into traditional businesses, and only 3-5% will become truly successful. Notable examples of such successful startups are Alif and Zipl.ai – projects that are now valued in the millions and have gained recognition from international funds. They have long expanded beyond Tajikistan and serve as role models for all of us.

Startup ecosystem: challenges and opportunities

The entrepreneurial ecosystem in Tajikistan includes business incubators, co-working spaces, and NGOs such as USAID and JICA.  Local corporations like Tcell, Avesta Group, Alif, FIFTYFIVE GROUP, as well as educational programs and university-based tech parks, also play important roles.  However, as Dilshod Jurazoda points out, the country still lacks venture capital funds and effective accelerator programs, making it difficult for startups to grow.

Dilshod Jurazoda shares his ambitions to launch accelerator programs for existing businesses, which will help scale projects and increase revenues.

Finally, a key step forward will be the implementation of a legislative proposal aimed at simplifying conditions for startups. Central Asia already has around 20-25 venture funds, and by 2025-2026, they are expected to become active in Tajikistan. The law is in its final development stage, and its enactment will be a significant milestone for the country's startup ecosystem.