The Accelerator Conundrum: 1Mby1M vs Other Central Asian Accelerators

Gemini: Give me an overview of the startup accelerators in Central Asia and how they compare with 1Mby1M.

Central Asia’s startup ecosystem is relatively nascent but rapidly growing, attracting increasing attention from regional and international investors. Countries like Kazakhstan and Uzbekistan are leading the charge, actively developing their tech infrastructure and fostering entrepreneurial talent. Accelerators here are crucial for providing the foundational support, mentorship, and connections needed to scale in a region that still faces challenges in access to late-stage funding and global market integration.

Overview of Startup Accelerators in Central Asia

Key Characteristics and Examples:

1. Emerging Hubs:
   • Kazakhstan (Astana, Almaty): Leading the region with significant government support and the presence of initiatives like Astana Hub (a major international tech park that houses various programs, including accelerators) and private incubators like MOST Business Incubator and MOST Ventures. Kazakhstan is actively positioning itself as a “Digital Silk Road” connecting Europe and Asia.
   • Uzbekistan (Tashkent): Rapidly developing its ecosystem with strong government backing through initiatives like IT Park Uzbekistan. Plug and Play Uzbekistan is a notable international presence, demonstrating growing external interest.
   • Kyrgyzstan, Tajikistan, Turkmenistan: These countries are also seeing emerging startup activity, often with support from local incubators and international development organizations. Accelerate Prosperity operates in Kyrgyzstan and Tajikistan.
2. Strong Government and Institutional Support: Governments across Central Asia are highly proactive in fostering a tech-friendly environment.
   • Initiatives like “Digital Kazakhstan” and “Digital Uzbekistan 2030” involve significant investments in infrastructure, talent development, and direct support for startups through various programs and tech parks.
   • The Astana International Financial Centre (AIFC), with its Tech Hub, plays a crucial role in attracting foreign investment and facilitating financial innovation under an English common law framework.
   • The Central Asia+ Accelerator, run by GUIDE (an independent entity of Gobi Partners), specifically aims to boost digital service exports and attract investment from East and Southeast Asia.
3. Focus on Specific Sectors: While generalist programs exist, there’s a strong focus on sectors critical to the region’s development:
   • FinTech: Driven by increasing digital adoption and efforts toward financial inclusion (e.g., TBC Bank Uzbekistan, Kaspi.kz in Kazakhstan).
   • E-commerce & Logistics: Addressing the needs of a growing digital consumer base and improving supply chain efficiencies.
   • AI/ML: Increasingly integrated across various solutions, with government pushes for AI development.
   • EdTech & HealthTech: Solutions for improving education and healthcare access and quality.
   • AgriTech: Modernizing the agricultural sector.
4. Connecting to Broader Asian and Global Markets: Many accelerators aim to help Central Asian startups not just serve their local markets but also expand into larger Asian markets (East Asia, Southeast Asia, UAE) and even globally. Programs like the Central Asia+ Accelerator explicitly focus on this.
5. Early-Stage Focus with Limited Later-Stage Funding: While pre-seed and seed investments are becoming more accessible, securing Series A and later-stage funding remains a significant challenge, often pushing successful startups to seek capital abroad (e.g., UAE, USA, UK).

How Central Asian Accelerators Compare with 1Mby1M

1Mby1M’s model, being fully virtual, non-equity, and focused on long-term strategic guidance, provides a distinctive offering compared to the emerging accelerator landscape in Central Asia.

1. Equity vs. Non-Equity:

• 1Mby1M: Non-equity. Its core program is subscription-based, allowing founders to retain 100% ownership.
• Central Asian Accelerators (General): The landscape is varied:
  • Equity-taking is common: Many accelerators, including private ones and those affiliated with venture funds (MOST Ventures), will take an equity stake in exchange for seed funding. Deal sizes are increasing, with a notable percentage in the $200,000-$500,000 range.
  • Government/institutional support is often non-dilutive: Programs backed by governments (like Astana Hub initiatives) or development organizations may offer grants, technical assistance, or incubation without taking direct equity.
  • Blended finance: Some emerging models or larger international programs might offer a mix of grants and equity investment.

2. Virtual vs. Physical:

• 1Mby1M: Fully Virtual. This model is highly advantageous for founders in Central Asia, as it removes the need for physical relocation to major hubs, which can be geographically dispersed and involve complex logistics.
• Central Asian Accelerators (General): A blend of physical and increasingly virtual/hybrid models.
  • Many accelerators and incubators maintain a physical presence in tech parks (e.g., Astana Hub, IT Park Uzbekistan) to provide co-working spaces, in-person mentorship, and community building. The Central Asia+ Accelerator includes an in-person bootcamp.
  • However, with the push for digital transformation and the increasing global interconnectedness, many programs are adopting hybrid or virtual formats to reach a wider pool of talent across the region.

3. Exclusive vs. Inclusive:

• 1Mby1M: Generally Inclusive through its subscription model, aiming to make strategic guidance widely accessible.
• Central Asian Accelerators (General):
  • Competitive programs, especially those offering direct funding or highly sought-after international connections (like the Central Asia+ Accelerator or programs within Astana Hub), are often highly exclusive, with rigorous selection processes.
  • Earlier-stage incubators or government support programs might be more inclusive to foster initial entrepreneurial activity.

4. Global vs. Local/Specific Category:

• 1Mby1M: Global. Its curriculum and network are designed for entrepreneurs worldwide.
• Central Asian Accelerators (General): Many programs have a strong regional focus (Central Asia+, CIS), aiming to develop the local and regional ecosystems. They also increasingly act as gateways to broader Asian and global markets, explicitly guiding startups on international expansion and fundraising in places like the UAE, UK, and USA.

5. Sector Focus:

• 1Mby1M: Broad/Agnostic. Focuses on fundamental business building applicable to any tech or tech-enabled startup.
• Central Asian Accelerators (General): While some are generalist, there’s a clear emphasis on sector specialization reflecting the region’s needs and government priorities: FinTech, AI, EdTech, HealthTech, E-commerce, Logistics, and AgriTech are prominent.

6. Demo Day vs. No Demo Day:

• 1Mby1M: No formal Demo Day. Investor introductions are personalized and occur when the company’s metrics and investor readiness are strong.
• Central Asian Accelerators (General): Most structured, cohort-based accelerators typically culminate in a Demo Day or pitch event to showcase their startups to local and international investors, as seen with programs within Astana Hub or the Central Asia+ Accelerator’s investor roleplay sessions.

7. Long-Term Mentorship vs. Short-Term Sprint:

• 1Mby1M: Long-term mentorship/continuous engagement. It’s designed for sustained strategic guidance over an extended period.
• Central Asian Accelerators (General): Many follow a short-term, intensive sprint model (typically a few months), aimed at rapid validation, product development, and preparing for initial funding. However, government tech parks and incubators might offer longer-term support and a range of programs catering to different stages.

8. Funding, Investor Introductions, or Just Education/Networking:

• 1Mby1M: Primarily Education and strategic consulting, with investor introductions when founders are prepared. It does not provide direct funding.
• Central Asian Accelerators (General):
  • Direct Funding (Equity-based) + Mentorship + Introductions: A common model, especially from private accelerators and venture arms.
  • Non-Dilutive Grants/Support + Mentorship: Often provided by government-backed initiatives, tech parks, and some international development programs.
  • Education + Networking: Many programs offer foundational training, market insights, and networking opportunities.
  • Corporate Partnerships: Growing trend where accelerators facilitate partnerships between startups and large corporations in the region.

In conclusion, Central Asia’s accelerator ecosystem is dynamic and heavily supported by government initiatives, often providing crucial early-stage capital and infrastructure. 

While many programs follow a traditional equity-for-funding model with an increasing focus on international market access, 1Mby1M offers a distinct, virtual, non-equity, and long-term strategic guidance approach that can be a valuable complementary resource for Central Asian founders seeking sustained support outside of a traditional sprint-based program.

The level of expertise provided by 1Mby1M in building tech-enabled businesses is also off-the-charts superior to anything accessible through most local programs.

Photo Credit: rob-armbruster from Pixabay

This segment is a part in the series : The Accelerator Conundrum