Uzbekistan welcomes Plug and Play. What does it offer and why is it so important?

Although a Plug and Play office has only just been established in Tashkent, representatives of this innovative platform have been operating there for quite some time.

In this time frame, they were able to choose entrepreneurs for their initial acceleration program and arrange multiple meetings with local venture funds.

Launching acceleration programs for entrepreneurs and connecting them with venture funds and corporations is the goal of Plug and Play.

The strategy is effective; since its establishment in 2006, the platform has assisted 35 startups from different countries in becoming unicorn companies.

Given that Plug and Play isin the rightplaceat the right time, it's possible that startups from Uzbekistan will appear among them soon.

What makes Plug and Play unique and how does it function?Example of Almalyk Mining & Metallurgical Plant.

Many accelerators work in a similar way - they help a startup create a product and develop a brand through access to expertise and mentoring.

In exchange for this, usually the accelerator is given a share in the company, which can later be resold at a higher price.

Plug and Play works differently. It connects startups and corporations that need each other.

Many large companies are faced with the problem of growth when it is necessary to automate processes, reduce costs, and look for new points of development.

One can create innovations (expensive and time-consuming), or one can use the achievements of some startup.

However, how to find such a startup? Will it suit a corporation? Is its technology ready for implementation?

This is where Plug and Play comes in. An accelerator connects a corporation that has a problem with a startup that has a potential solution.

This is where the main advantage of the accelerator is - not just raising money, but the ability to pilot the technology within the corporation.

This is particularly useful since it enables a startup to evaluate how well its invention adheres to market demands while operating in an accelerated pace.

What corporations need it? Example

In March, Plug and Play representatives hosted a meeting at the Almalyk Mining and Metallurgical Plant (AMMP).

Like any large enterprise, the plant is interested in innovations that would simplify, facilitate and speed up the existing processes.

Plug and Play startups from several countries presented a range of such solutions that dealt with ore processing, automation, data flow processing, weather forecasting, industrial water analysis, and more.

AMMP specialists got interested in these innovations and the both parties agreed to continue negotiations.

What Uzbek startups benefit from Plug and Play's acceleration program

In 2022, Plug and Play opened admissions to its first acceleration program in Uzbekistan.

Over 120 projects submitted applications, 16 were selected. Those that are already working (Didox, BotCommerce and others) got the opportunity to reach a new level.

Overall, Plug and Play acceleration providesfive main advantages:

1. Expertise.

Plug and Play brings together top-quality professionals, both practitioners and theorists. Many of them are well aware of the needs and shortcomings of the market.

Startups have access to experts who can advise them on the path to take their business in, where the best opportunities are, and what needs to be addressed.

Having strong mentors is very helpful when evaluating product hypotheses, because startup founders usually don't have relevant experience.

2.Opportunity to enter a major company.

Plug and Play works with corporations across the world, making it possible to offer the developments to one of them.

If we get back to the example of the AMMP, then it is problematic for a startup to get an appointment with the Chief Innovation officer of the plant.

On the other hand, if a startup has successfully completed Plug and Play's acceleration program, doors to numerous businesses open up.

Aloqabank, one of the partners in Uzbekistan, for instance, is constantly interested in emerging novelties in the banking and finance sector.

3.Investment opportunities.

Every year, the Plug and Play venture team invests in over 260 startups around the world.

Furthermore, the platform has 300 venture funds as partners, the ecosystem volume exceeds $7 billion.

Startups that have passed acceleration program have a good chance for funding either from the platform itself or from the partners.

In Uzbekistan, for instance, one of the partners Aloqa Ventures has already financed 10 startups.

4. Networking.

During the program, a startup is surrounded by mentors, professionals, and representatives of other projects.

This makes it possible for them to exchange experiences, share opinions and assessments, establish new connections, and find like-minded people.

Networking allows them to quickly find employees, customers and money, launch joint projects and conclude new partnerships.

5. Infrastructure.

One of the most valuable benefits.

During acceleration and even after, a startup has access to the Playbook - a platform where it can keep in touch with mentors, take part in various events and initiatives.

The Playbook is especially useful because here it can track the selection of companies by major corporations that would mean a stable sales channel and customers.

Plug and Play in Uzbekistan — in the right place at the right time

Uzbekistan is experiencing an IT boom.

This is evident from the outcomes of 2022, the growth of exports, and the influx of entrepreneurial money into the state. The way 2023 got started could confirm that as well.

More businesses are starting up, and local businesses are expanding rapidly. The former could aid the latter, but the market is not quite there yet.

Startups in Uzbekistan may have the right technology, but it is unlikely that they have the experience to channel ideas in the right direction.

Companies, in turn, also do not fully understand which startup could help them in resolving the shortcomings and how.

Someone who can bring the two sides together, assist one, and direct the other is required in such circumstances. Someone who has experience, expertise, vision.

Plug and Play fits these requirements perfectly. Representatives of the platform can hire mentors to help startups figure everything out, find companies that would benefit from innovations, and allocate money for projectsdevelopment.

All are in place in Uzbekistan right now: startups, companies, people and money.However it is important to make sure that they are not isolated separate elements, but part of the ecosystem.

In these circumstances, Plug and Play that brings together over 40000 entrepreneurs, more than 500 of the world's greatest corporations, universities, government agencies, and venture fundsis exactly what we need.