VENTURE CAPITAL RULES ARE ADJUSTED TO BOOST INVESTMENTS IN THE EU

The EU rules on venture capital and social enterprises have been amended with the aim of boosting investment in start-ups and innovation by a proposed regulation of the Council and the European Parliament. The proposed regulation is part of the EU’s plan to develop a fully functioning capital markets union, diversifying funding sources for Europe’s businesses and long-term projects. According to the EU legislators, this regulation will help stimulating market financing and thereby boosting economic growth, contributing the EU’s catching-up in this sector.

The proposed regulation changes the rules regarding European venture capital funds (Euveca) and European social entrepreneurship funds (Eusef), makes the funds available to fund managers of all sizes (including larger fund managers whose assets under management is more than €500 million) and expands the range of companies (containing unlisted companies with up to 499 employees, as well as small and medium-sized enterprises) that the funds can invest in.