What can Uzbekistan Teach the Midwest About Momentum?

I recently traveled to Uzbekistan with Illinois Comptroller Susana Mendoza to meet with leaders across government, venture capital, and technology. We visited Tashkent, Urgench, and Khiva which are three cities that together tell a story of a country rapidly building its innovation economy.

Coming from Chicago, a city that has spent the past decade rewriting its own playbook for growth, Uzbekistan felt familiar. Both are places often overlooked, both have deep technical talent, and both are proving that coordinated ecosystems can compete with the coasts.

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NOTE FROM THE EDITOR:Uzbekistan is a country in central Asia, and its largest borders are with Kazakhstan to the north and Turkmenistan to the south. A former Soviet republic, it is slightly bigger than California and with a slightly smaller population at about 36 million. It’s estimated GDP per capita is $10,500 (2024) vs Illinois $90,449. It’s businesses raised a total of $137 million in 2024, and have raised $111m this year so far according to data from Dealroom. This compares to Illinois’ figures of $2.7 billion and $1.6 billion, respectively. This delivers a fundraising to GDP ratio of 0.12% vs Illinois 0.23% based on 2024 figures.

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Uzbekistan just minted its first unicorn, Uzum, a super-app combining e-com, fintech, and logistics. The country now has 12 active venture firms and an IT Park that co-locates startups, accelerators, and investors in the same buildings. The energy feels similar to the Midwest’s early rise in that it was tight-knit, collaborative, and motivated by purpose over hype.

Government policy plays a major role. Founders receive full tax exemptions, universities are building dedicated AI and data programs, and public agencies have become active partners in digital transformation. The government has also announced $6.5B in investments to bring 500 megawatts of compute capacity online.

How does Uzbekistan compare with Illinois and the Midwest in general?

When I think about Illinois, the parallels are clear. Our state has become a hub for applied technology from biomanufacturing and semiconductors to data centers and AI infrastructure through coordinated public and private investment. Just as Uzbekistan is positioning itself as the back-office IT hub of Central Asia, Illinois is emerging as a center of physical intelligence in America, where compute, manufacturing, and research collide.

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Together they (Uzbekistan and Illinois) represent two nodes in a growing global network of pragmatic builders.

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There’s a bigger story here about how innovation is decentralizing. Uzbekistan’s startup ecosystem is early, but it’s already attracting attention from Europe, the Gulf, and East Asia. 

Meanwhile, the Midwest continues to outperform in capital efficiency and sustainable business models. Together they represent two nodes in a growing global network of pragmatic builders.

For founders and investors in Chicago, there’s low-hanging fruit in building bridges with emerging markets like this one: shared engineering talent, fintech partnerships, and policy exchange. The connective tissue is already forming, and it’s powered by mutual values.

Uzbekistan reminded me that innovation doesn’t need hype to thrive. It needs alignment, incentives, and a shared sense of mission. And on that front, the heart of Central Asia has more in common with the heart of America than most people realize.