About private equity

How private equity invests in privately-owned businesses, supports jobs and creates prosperity.

Members

Login to access your exclusive member-only content and account information.

Login

Not a member? Join us

  • Operate to the highest level of professional standards
  • Access authoritative industry research and data
  • Navigate the complex EU regulatory environment
  • Network and engage with industry leaders
  • Home /
  • News & opinion /
  • Newsroom /
  • Europe’s next tech and business champions to benefit from EU regulatory revisions for venture capital
News & opinion
Newsroom
Share

Europe’s next tech and business champions to benefit from EU regulatory revisions for venture capital

14 Jul 2016

- Broader range of fund managers to access EU fund marketing ‘passport’
- Move set to enhance fundraising options for investment in start-ups, SMEs and growth companies across Europe

Invest Europe has welcomed proposals to improve fund manager access to an EU cross-border ‘passport’, facilitating venture capital fundraising and investment into Europe’s most promising small and medium sized businesses.

Today the European Commission announced its plan to revise the European Venture Capital Funds (EuVECA) Regulation, increasing the number of fund managers able to benefit from its EU marketing passport. This will allow them to raise capital from investors across the region to invest into Europe’s growing companies, instead of being limited to domestic investors.

Only 25% of European venture capital fundraising in 2013-15 was raised from European investors outside the fund’s home country, according to data from Invest Europe, the trade association representing private capital.

“As we look to increase investment into Europe’s dynamic small and medium-sized businesses, an improved EuVECA marketing passport for fund managers will encourage cross-border flows of capital and deliver on a key component of the Capital Markets Union,” said Michael Collins, Invest Europe’s Deputy Chief Executive and Public Affairs Director.

As part of the regulation review, the Commission plans to outlaw Member States’ existing fees and charges that are currently discouraging cross-border fundraising and acting as a barrier to the achievement of a Capital Markets Union. It will also allow EuVECA-qualifying fund managers to invest in a wider range of small and medium sized European companies. Investors will now be able to support companies with up to 499 employees – double the number of staff currently permitted under the regulation – providing Europe’s dynamic mid-sized companies with better potential access to an important source of investment.

“These regulatory revisions will enhance the options for capital to be raised and invested into the growing European businesses that need it most,” said Collins. “The fees and charges unfairly imposed on fund managers by some EU Member States are barriers to fundraising and must go. When it comes to investing the capital, allowing follow-on investments into companies that are expanding rapidly and creating jobs could fuel the next big European champions, in the same way fund managers in Silicon Valley supported the growth of Google and Facebook.”

“We look forward to working closely with the European Commission, Parliament and Council in the coming months to secure the revised Regulation’s speedy adoption,” added Collins.

Last year, the total amount of private equity and venture capital investment in European companies increased by 14% from 2014 to €47.4 billion, with nearly 5,000 businesses receiving capital from European fund managers, according to Invest Europe’s annual industry data.

Media enquiries For more information please contact

Lynn Nicholson Image

Lynn Nicholson

Communications

Communications Director

Maria Nikolaidi Image

Maria Nikolaidi

Communications

Senior Communications Officer

Share

What can I do to manage cookies stored on my computer or phone?

You can accept or refuse cookies. Accepting cookies is usually the best way to make sure you get the best from a website.

Most PCs automatically accept them but you can change your browser settings to restrict, block or delete cookies if you want. Each browser is different, so check the 'Help' menu of your particular browser (or your mobile phone's handset manual) to learn how to change your cookie preferences. Many browsers have universal privacy settings for you to choose from.

Help on how to set and customise your cookie settings for your browser

How to manage cookies in Internet Explorer

Cookie settings in most versions of Internet Explorer can be found by clicking the tools option and then the privacy tab.

How to manage cookies in Firefox

Cookie settings in Firefox are managed in the Options window's Privacy panel. See Options window - Privacy Panel for information on these settings.

How to manage cookies in Chrome

Click on the spanner icon on the toolbar, select settings, click the under the bonnet tab, click on content settings in the privacy section.

How to manage cookies in Opera 

You can manage cookies in Opera if you Click on settings, then Preferences, then Advanced and finally Cookies

How to manage cookies in Safari

Choose Safari, then preferences and then click security. You should then be able to specify if and when Safari should accept cookies.

To manage cookies on your mobile phone please consult your manual or handbook.

Get more help about how cookies work with specific browsers.

What happens if I don't accept cookies?

If you decline cookies, some aspects of Invest Europe site may not work on your computer or mobile phone and you may not be able to access areas you want on the website. For this reason we recommend that you accept cookies.

What happens if I delete my cookies?

If you delete all your cookies you will have to update your preferences with us again and some aspects of our site may not work.

What happens if I change computers or mobile?

If you use a different device, computer profile or browser you will have to tell us your preferences again.

If you'd like to learn more about cookies in general and how to manage them, visit aboutcookies.org.

We can't be responsible for the content of external websites.

Opt-out of cookies

Login

Join today

This is for members only. To view in full login or join Invest Europe today.