As a result of the financial and economic crisis many innovative small and medium sized businesses (SMEs) experience limitations in the start-up and the expansion phase due to lack of access to venture capital. The agreements aims to create better opportunities for venture capital and social entrepreneurship funds to raise capital across borders in the EU, ensuring that in the end more financing is channelled to innovative SMEs and social businesses.
Danish Minister for Business and Growth, Ole Sohn:
With the proposals venture capital and social entrepreneurship funds, whose total amount of assets do not exceed 500 million Euros, can obtain an “EU passport”. This means that if they fulfil a number of criteria, the funds can be marketed across borders in the EU without meeting additional national requirements. It will be optional for the funds administers whether they wish to take part in the arrangement.
The political agreements are to be finally adopted by the European Parliament and the Council and enter into force shortly after that.