EU agrees rules to give more companies access to venture capital

Stock Market
© Reuters. An European Union (EU) flag is pictured during a ceremony in Lausanne© Reuters. An European Union (EU) flag is pictured during a ceremony in Lausanne

BRUSSELS (Reuters) – European Union states and their joint parliament in Brussels on Tuesday agreed new rules to give smaller companies improved access to financing, a move the bloc said would help create jobs and spur economic growth.

After the rules are formally adopted, European venture capital funds – which support higher risk start-ups – will find it easier to invest in a wider range of companies, including small and medium enterprises.

“The reforms we have agreed – expanding investment possibilities for funds, broadening the range of eligible managers and simplifying administration – will help investor capital reach the SMEs that need it,” Valdis Dombrovskis, a vice president at the European Commission, the EU's executive, said.

Venture capital is considered an important ingredient in fostering innovation but the European industry is small compared with the United States.

Small and medium companies in Europe receive 75 percent of their funding from banks, and have struggled to get capital as the banking sector faced higher capital requirements.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Stock Market News

Leave a Reply

Your email address will not be published. Required fields are marked *