{"id":7768,"date":"2018-05-23T12:00:00","date_gmt":"2018-05-23T12:00:00","guid":{"rendered":"https:\/\/kglabs.org\/research-and-evidence\/kg-labs-meets-mercator-fellows-on-international-affairs-may-2018\/"},"modified":"2018-05-23T12:00:00","modified_gmt":"2018-05-23T12:00:00","slug":"kg-labs-meets-mercator-fellows-on-international-affairs-may-2018","status":"publish","type":"post","link":"https:\/\/kglabs.org\/ru\/kg-labs-meets-mercator-fellows-on-international-affairs-may-2018\/","title":{"rendered":"KG Labs Meets Mercator Fellows on International Affairs, May 2018"},"content":{"rendered":"<!--\nTAXONOMY PACK\n=============\nLegacy target: \"KG Labs meets with Mercator Fellows on International Affairs 2017-2018\" (2018-05-23, p2000)\nLegacy URL: https:\/\/kglabs.org\/news\/kg-labs-meets-with-mercator-fellows-on-international-affairs-2017-2018\/\nSource folder: 2018-05 Mercator Fellows\/\nOutput file: post-mercator-fellows-2018.html\n\nPrimary category: Community And Events\nSecondary category: Research And Evidence\nTopic themes: regional innovation ecosystems | startup ecosystem | digital public infrastructure\nProgram\/pillar: Raise Awareness + Promote Smart Policies\nContent type: post\nGeography: Kyrgyzstan, Bishkek (Ololohaus)\nTimeframe: 2018-05-23\nTags: mercator fellowship | nefia | taza koom | isoc kyrgyzstan | seth fearey | startup ecosystem database | ololohaus | aziz soltobaev | talant sultanov | may 2018 | ecosystem map\n\nMEDIA ANNOTATIONS\n=================\n[FEATURED IMAGE]\n- Source path: 2018-05 Mercator Fellows\/20180523_110708.jpg (Aziz Soltobaev and Talant Sultanov together) \u2014 confirmed in legacy WP post as opening image\n- Role: featured\n- Alt: Aziz Soltobaev and Talant Sultanov presenting to Mercator Fellows at Ololohaus, Bishkek, May 23 2018\n\n[INLINE \u2014 Talant Sultanov solo]\n- Source path: 20180523_111307.jpg or 20180523_111332.jpg\n- Alt: Talant Sultanov presenting Taza Koom strategy to Mercator Fellows, Bishkek, May 23 2018\n\n[INLINE \u2014 Aziz Soltobaev solo]\n- Source path: 20180523_111330_001.jpg\n- Alt: Aziz Soltobaev presenting Kyrgyz startup ecosystem database to Mercator Fellows\n\n[INLINE \u2014 discussion shot]\n- Source path: 20180523_112359.jpg\n- Alt: Q&amp;A and discussion session with Mercator Fellows\n\nASSUMPTIONS\n===========\n- Date: 23 May 2018 (Wednesday)\n- Venue: Ololohaus, Bishkek (confirmed from presentation slide 1)\n- Hosts: Aziz Soltobaev (KG Labs founder) + Talant Sultanov (Chair of ISOC Kyrgyz Chapter, Taza Koom co-author)\n- Audience: cohort of Mercator Fellows on International Affairs 2017-2018 \u2014 German-speaking young professionals and university graduates, programme funds 24 fellows annually with monthly grant + travel\/conference\/language course funding; alumni network ~400 (nefia e.V.)\n- Programme funder: Stiftung Mercator (German foundation)\n- Joint role: Soltobaev and Sultanov co-authored Taza Koom National Digital Transformation Strategy\n- Presentation content (from 2018-05-23 Mercator Fellowship Presentation.md):\n  - KG Labs: founded 2015, mission to boost tech ecosystem and shift KG from post-industrial to knowledge-based economy\n  - 4 KG Labs program pillars: Build Skills (hackathons \u2014 Garage48, Travel&amp;Tourism, Fake News, Safe City; Trainings \u2014 Community Leaders Academy); Raise Awareness (Tech ecosystem map, Startup Safary, Startup Grind, Startup Nations, ecosystem tours, MVP May 2018, CNBC documentary \"The New Silk Road: Ambition and Opportunity\"); Unite Community (tech networking party, regular meetups); Promote Smart Policies (Kyrgyz Startup, Taza Koom, Agile Governance)\n  - Notable companies cited: Makeuseof (top US 1000, 40M visits), Kids312 YouTube channel (1.6 billion views), B12.io (AI-powered website maker), Socialshopwave, Picvpic (fashion ecommerce), Behavox (big data analysis)\n  - Taza Koom 7 goals: world-class digital infrastructure on green tech and clean energy; favourable environment for sustainable innovative development; digital opportunities for all + digital skills; supporting every Kyrgyzstani as digital citizen; open digital society driven by data industry; safe place to live and work online; regional hub of digital Silk Road\n  - Kyrgyz Startup Ecosystem Database summary by Seth Fearey, 20 October 2017 \u2014 updated 12\/2016 \u2014 published at kglabs.org\/index.php\/kyrgyz-startup-ecosystem\/\n  - Database entries (10\/2017): 97 startups, 88 supporting organizations, 51 individuals, 19 investors\n  - Startups: oldest 2000, youngest 2016, average age 4.6 years, 91 of 97 HQ in Bishkek; 6 with HQs in Hong Kong, Kiev (2), London, Seattle, Sydney\n  - Sector mix: e-commerce 20, media 8, entertainment 7, taxi 6, CRM 5, job boards 5, finance 5, travel 4, classifieds 4, education 4, auto sales 3, CMS 3, social network 2, other 22\n  - Stages (where data available): 3 early seed, 6 rising success, 8 notable success, 2 mature\n  - Sample valuations: HOUSE.KG ~$300K, HATA.KG ~$2.5M, iBOX ~$80M\n  - Supporting orgs ratio: 88 to 97 startups (very high; one comment in slides asked which actually play a leadership role)\n  - Investors: 19 total (10 in Bishkek, 2 Almaty, 2 Astana, 1 Moscow, 2 Kiev, 1 Stanford, 1 Boston); investment sizes mostly small ($1K-$50K range), 2 in $400K-$500K, 1 at $1M, 9 unknown\n  - Open question raised: \"are 'startups' really tech companies at all stages of maturity?\" + \"no info on employees or sales, so we cannot tell economic significance\"\n- Background on Aziz: BA Economics &amp; Business Administration AUCA 2003; analyst\/field reporter Eurasianet, CACI Analyst, IRINnews 1999-2005; founded e-commerce store Svetofor in 2004; multiple Central Asia startups (KZ\/TJ\/UZ\/CN); fundraised micro-VC BOT Systems $20mln 2013-2014; founded KG Labs 2015 + co-founded ISOC Kyrgyzstan\n-->\n\n\n<h1 class=\"wp-block-heading\">KG Labs and ISOC Kyrgyzstan Meet the Mercator Fellows: A Working View of the Kyrgyz Tech Ecosystem, May 2018<\/h1>\n\n\n\n<p>On Wednesday, May 23, 2018, at Ololohaus in central Bishkek, Aziz Soltobaev and Talant Sultanov sat down with the Mercator Fellows on International Affairs cohort for an afternoon that ran longer than scheduled. Soltobaev was presenting in his role as KG Labs&#8217; founder; Sultanov as Chair of the Internet Society&#8217;s Kyrgyz Chapter. Both had also been the co-authors of the Taza Koom national digital-transformation strategy that the Kyrgyz government was, at that point, in the early stages of trying to implement, which meant the conversation moved quickly from the kind of presentation a fellowship cohort usually gets \u2014 abstract context \u2014 to the kind they rarely get: an unvarnished briefing on what was actually working, what wasn&#8217;t, and what specific operational decisions were on the table.<\/p>\n\n\n\n<p>The Mercator Fellowship on International Affairs, run from Germany by Stiftung Mercator, sponsors twenty-four young German-speaking professionals each year \u2014 graduates from any discipline who are committed to international affairs work. Fellows receive a monthly grant, plus support for foreign trips, conferences, and language courses; alumni form the ~400-member Netzwerk f\u00fcr internationale Aufgaben (nefia e.V.). The cohort visiting Bishkek was part of a structured Central Asia leg that brought them into contact with practitioners working on the digital-policy and ecosystem-development questions in countries the German policy conversation usually approaches from a distance.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\">\n  <img decoding=\"async\" src=\"2018-05 Mercator Fellows\/20180523_110708.jpg\" alt=\"Aziz Soltobaev and Talant Sultanov presenting to Mercator Fellows at Ololohaus, Bishkek, 23 May 2018\" \/>\n  <figcaption>Aziz Soltobaev (KG Labs) and Talant Sultanov (ISOC Kyrgyzstan Chapter), Ololohaus, Bishkek, 23 May 2018. Source: KG Labs archive, 2018-05 Mercator Fellows\/.<\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Taza Koom Briefing<\/h2>\n\n\n\n<p>Sultanov opened with the Taza Koom strategy itself. Adopted formally by the Kyrgyz government in 2017, Taza Koom set seven national goals: building world-class digital infrastructure based on green technologies and clean energy; creating a favourable environment for sustainable innovative development; ensuring digital opportunities for all alongside digital skills for the digital economy; supporting every Kyrgyzstani in becoming a digital citizen with the necessary knowledge to participate in their own governance; creating an open digital society driven by a data industry; making Kyrgyzstan a safe place to live and work online; and positioning the country as a regional hub of the digital Silk Road. Each goal had a concrete first step attached. Each also had a specific dependency \u2014 usually on regulatory change, sometimes on infrastructure procurement, sometimes on training pipelines that did not yet exist.<\/p>\n\n\n\n<p>The Mercator Fellows were a useful audience for that briefing because they were not expected to fund anything or evaluate anyone. The presentation could be honest about the gap between strategy and execution. Sultanov was direct that several of the seven goals depended on regulatory work that was either underway or stuck \u2014 and on the fellowship cohort&#8217;s question about which of the goals was the hardest, the answer was that none of them were technically hard; the binding constraint everywhere was institutional capacity inside the relevant ministries.<\/p>\n\n\n\n<figure class=\"wp-block-image size-medium alignright\">\n  <img decoding=\"async\" src=\"2018-05 Mercator Fellows\/20180523_111332.jpg\" alt=\"Talant Sultanov presenting the Taza Koom national digital transformation strategy to Mercator Fellows, Bishkek, May 2018\" \/>\n  <figcaption>Talant Sultanov presenting Taza Koom. Source: KG Labs archive.<\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Ninety-Seven Startups, Ninety-One in Bishkek<\/h2>\n\n\n\n<p>Soltobaev&#8217;s portion ran through the Kyrgyz Startup Ecosystem Database \u2014 KG Labs&#8217; attempt to compile, by hand, the list of operating tech-adjacent companies, supporting organisations, individuals, and investors in the country. The summary in the presentation came from Seth Fearey&#8217;s October 2017 working version. As of that update, the database recorded 97 startups, 88 supporting organisations, 51 individuals worth tracking, and 19 investors active enough to count. Of the 97 companies, 91 had their headquarters in Bishkek; the remaining six were spread across Hong Kong, Kiev (two), London, Seattle, and Sydney \u2014 a small but specific diaspora of Kyrgyz-founded startups that had moved their primary operating base abroad, usually to be closer to capital or to a larger customer market.<\/p>\n\n\n\n<p>The age distribution of the companies was the most interesting single line in the data. The oldest was founded in 2000; the youngest in 2016; average age 4.6 years. The annual founding count moved from 4 companies in 2004 to 7 in 2010, 15 in 2014, and 19 in 2016 \u2014 a steady acceleration that mapped onto the broader expansion of internet penetration and smartphone use in the country. By sector the database tilted toward e-commerce (20 companies), with media (8), entertainment (7), taxi (6), CRM, job boards, and finance (5 each) following. Stage data was thinner: only nineteen companies had any usable maturity-classification data, distributed as 3 early seed, 6 rising success, 8 notable success, and 2 fully mature. Sample valuations from public reporting put HOUSE.KG at around $300K, HATA.KG at $2.5M, and the IBOX point-of-sale company at the top of the visible distribution at roughly $80M \u2014 a single outlier that distorted the average and was instructive about what late-stage success looked like locally.<\/p>\n\n\n\n<p>Soltobaev highlighted six specific company stories that mattered to the broader ecosystem narrative: Makeuseof (a Kyrgyz-founded technology blog that had become a top-1000 US site with around 40 million monthly visits); Kids312 (a YouTube channel for children that had accumulated 1.6 billion total views by mid-2018); B12.io (an AI-powered website-builder by another Kyrgyz founder); Socialshopwave; Picvpic, the fashion e-commerce platform run by Edil Ajibaev (who had been on the Travel &amp; Tourism Hackathon judging panel in 2016); and Behavox, the big-data analysis company in London. Six companies do not constitute an ecosystem; what they constitute is a proof-of-concept \u2014 that a Kyrgyz technology founder could build something globally significant, and that the country had already produced more than one of them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-medium\">\n  <img decoding=\"async\" src=\"2018-05 Mercator Fellows\/20180523_111330_001.jpg\" alt=\"Aziz Soltobaev presenting the Kyrgyz startup ecosystem database to Mercator Fellows at Ololohaus\" \/>\n  <figcaption>Aziz Soltobaev presenting the Kyrgyz startup ecosystem database. Source: KG Labs archive.<\/figcaption>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">The Ratio That Tells the Story<\/h2>\n\n\n\n<p>The most useful diagnostic in the database was the ratio of supporting organisations to startups: 88 to 97. In a healthy ecosystem, that ratio runs the other way \u2014 there are far more operating businesses than there are organisations supporting them. The Kyrgyz figure showed exactly the inverse, and Soltobaev was direct about what it meant: too much of the country&#8217;s tech ecosystem activity in 2018 was meeting, training, hackathon-running, mentoring, conferencing, and writing strategy documents, and not enough of it was building, shipping, and selling. The supporting layer had become, in part, its own product. The presentation included a slide question that did not have an answer: which supporting organisations actually play a leadership role, as opposed to being members of the supporter category? KG Labs was openly counting itself in the audit.<\/p>\n\n\n\n<p>The investor side of the picture was thinner still. The 19 investors in the database broke down as 10 headquartered in Bishkek, 2 in Almaty, 2 in Astana, 1 in Moscow, 2 in Kiev, and one each in Stanford and Boston \u2014 meaning that most ostensibly Kyrgyz investors were in fact Central Asian, and the truly international cap table required reaching outside the region. Investment sizes clustered in two patterns: small angel-scale checks ($1K\u2013$50K) and a thin layer of seed and Series A activity above that, with very few growth-stage investors visible at all. The pipeline gap between angel and growth capital was visible in the data and was the gap most companies in the database had run into when they tried to scale beyond the local market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Discussion Afterwards<\/h2>\n\n\n\n<p>The Q&amp;A ran nearly as long as the presentations. The Mercator Fellows worked across a wide spread of fields \u2014 public policy, journalism, development economics, climate work \u2014 and the questions split between the technical and the political. The technical ones were specific: what was the regulatory pathway for digital identity, what data protection law applied to e-commerce platforms, how were the financial-sector pieces of Taza Koom interlocking with the National Bank&#8217;s payment-system plans. The political ones cut deeper: what was the relationship between Taza Koom and the changing ruling coalitions in Bishkek, what happened to a digital-transformation strategy when the next government inherited it, what role did civil society play when state capacity was the bottleneck. The cohort left with the realistic version of the picture rather than the brochure version, and with specific KG Labs and ISOC Kyrgyzstan contacts to follow up on.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\">Event Details<\/h3>\n\n\n\n<figure class=\"wp-block-table\">\n  <table>\n    <tbody>\n      <tr>\n        <td>Date<\/td>\n        <td>23 May 2018 (Wednesday)<\/td>\n      <\/tr>\n      <tr>\n        <td>Venue<\/td>\n        <td>Ololohaus, Bishkek<\/td>\n      <\/tr>\n      <tr>\n        <td>Hosts<\/td>\n        <td>Aziz Soltobaev (KG Labs Public Foundation, founder); Talant Sultanov (Chair, Internet Society \u2014 Kyrgyz Chapter; co-author of Taza Koom National Digital Transformation Strategy)<\/td>\n      <\/tr>\n      <tr>\n        <td>Audience<\/td>\n        <td>Mercator Fellows on International Affairs 2017\u20132018 cohort, programme run by Stiftung Mercator, Germany \u2014 24 fellows annually + ~400-member nefia e.V. alumni network<\/td>\n      <\/tr>\n      <tr>\n        <td>Subjects covered<\/td>\n        <td>Taza Koom (7 goals + execution status); KG Labs program pillars (Build Skills \/ Raise Awareness \/ Unite Community \/ Promote Smart Policies); Kyrgyz Startup Ecosystem Database (97 startups, 88 supporting orgs, 51 individuals, 19 investors as of 10\/2017)<\/td>\n      <\/tr>\n      <tr>\n        <td>Database snapshot (Oct 2017)<\/td>\n        <td>97 startups (91 in Bishkek, 6 abroad in Hong Kong\/Kiev\/London\/Seattle\/Sydney); founded 2000\u20132016; average age 4.6 years; e-commerce dominant sector; sample valuations HOUSE.KG ~$300K, HATA.KG ~$2.5M, iBOX ~$80M; investors 19 (10 Bishkek, others Almaty, Astana, Moscow, Kiev, Stanford, Boston)<\/td>\n      <\/tr>\n    <\/tbody>\n  <\/table>\n  <figcaption>Source: 2018-05 Mercator Fellows archive \u2014 2018-05-23 Mercator Fellowship Presentation.pptx (24 slides; database summary by Seth Fearey, 20 October 2017). Legacy WP post: kglabs.org\/news\/kg-labs-meets-with-mercator-fellows-on-international-affairs-2017-2018\/<\/figcaption>\n<\/figure>\n\n","protected":false},"excerpt":{"rendered":"<p>KG Labs and ISOC Kyrgyzstan Meet the Mercator Fellows: A Working View of the Kyrgyz Tech Ecosystem, May 2018 On Wednesday, May 23, 2018, at Ololohaus in central Bishkek, Aziz Soltobaev and Talant Sultanov sat down with the Mercator Fellows on International Affairs cohort for an afternoon that ran longer than scheduled. Soltobaev was presenting [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[374,357],"tags":[391,624,676,394,639,388,393,386,387,324,389,390,392,137],"class_list":["post-7768","post","type-post","status-publish","format-standard","hentry","category-community-and-events","category-research-and-evidence","tag-aziz-soltobaev","tag-geo-bishkek","tag-op-ecosystem-activation","tag-ecosystem-map","tag-format-event-record","tag-isoc-kyrgyzstan","tag-may-2018","tag-mercator-fellowship","tag-nefia","tag-ololohaus","tag-seth-fearey","tag-startup-ecosystem-database","tag-talant-sultanov","tag-taza-koom"],"translation":{"provider":"WPGlobus","version":"3.0.2","language":"ru","enabled_languages":["en","ru"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"ru":{"title":false,"content":false,"excerpt":false}}},"_links":{"self":[{"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/posts\/7768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/comments?post=7768"}],"version-history":[{"count":0,"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/posts\/7768\/revisions"}],"wp:attachment":[{"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/media?parent=7768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/categories?post=7768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kglabs.org\/ru\/wp-json\/wp\/v2\/tags?post=7768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}