The European Union wants to make it easier for small companies to access finance from venture capital firms with a proposal to standardise rules applying to such investors.
The European Commission is putting forward plans to introduce a new law which would standardise the legal status of venture capitalists and thus help raise funds for different projects across the EU. The EU’s executive said it would reduce the regulatory hurdles across different countries for venture capital funds seeking to attract capital.
“In order to support the most promising start-ups, venture capital funds must become bigger and more diversified in their investments,” Michel Barnier, the EU official in charge of financial regulation said in a statement.
“Today’s proposals will help develop this emerging market.”
The European Union’s executive Commission writes the first draft of EU law, which then goes to the European Parliament and to member governments for consideration.