EU Facilitates VC for Small businesses

The European Union is trying 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 bloc’s executive said on Wednesday, writes Reuters. The European Commission said its proposal for a new law would make it easier for venture capitalists to raise funds for start-ups by standardising their legal status across the EU, writes Reuters.

(Reuters) – The European Union is stepping up efforts 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 bloc’s executive said on Wednesday.

The European Commission said its proposal for a new law would make it easier for venture capitalists to raise funds for start-ups by standardising their legal status across the EU.

In doing this, 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.