TASHKENT, Uzbekistan, February 4. Uzbekistan
has presented a draft law “On Alternative Investment Funds,”
designed to establish a comprehensive legal framework for the
development of venture capital and private equity, Trend reports via the
Ministry of Investment, Industry, and Trade of Uzbekistan.
The draft legislation was discussed at an expanded meeting of
the Working Group of the Foreign Investors Council under the
President of the Republic of Uzbekistan, held in Tashkent. The
meeting was organized by the Ministry of Investment, Industry, and
Trade in cooperation with the Secretariat of the Foreign Investors
Council.
The law is being developed jointly by the Ministry, the
International Finance Corporation, Kosta Legal, PwC, and a group of
international experts.
The proposed framework introduces internationally recognized
concepts such as private equity and venture capital funds, as well
as business angels. It provides for a limited partner/general
partner (LP/GP) structure, incorporates modern investment
instruments including SAFE agreements and convertible notes, and
establishes pass-through taxation principles.
According to the Ministry, adoption of the law is expected to
demonstrate Uzbekistan’s commitment to building a competitive
alternative investment market and fostering an enabling environment
for innovative and high-growth businesses.
SAFE (Simple Agreement for Future Equity) agreements in
Uzbekistan, introduced by IT Park Uzbekistan, are designed to
facilitate early-stage funding for startups by providing a simpler
alternative to traditional equity financing. These agreements allow
founders and investors to postpone company valuation until a later
investment round. Established in 2025, the standardized package
includes SAFE templates compliant with local laws. Like global
SAFEs, they grant investors future equity rights during triggering
events, making them more favorable for founders compared to
convertible notes, as they lack maturity dates and interest
accrual. They cater to both resident and nonresident investors
interested in Uzbek tech startups.
Stay up-to-date with more news on Trend News
Agency's WhatsApp channel
