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Proposal for a Regulation amending Regulation (EU) No 345/2013 on European venture capital funds (EuVECA) and Regulation (EU) No 346/2013 on European social entrepreneurship funds (EuSEF) - 14.07.2016

The Proposal is designed to improve existing legislation that governs European Venture Capital Funds, EuVECA, and European Social Entrepreneurship Funds, EuSEF. These are funds supporting young and innovative companies, or enterprises with the intention of generating positive social impact. The Proposal will amend the regulations in three main ways: extending the range of managers eligible to market and manage EuVECA and EuSEF funds; increasing the range of companies that can be invested in by EuVECA funds; and making the registration and cross border marketing of these funds easier and cheaper. This Proposal is part of the Capital Markets Union (CMU) Action Plan and very well fits with its aim to unlock market-based investments to SMEs and long-term projects.

Public consultation on the review of the European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF) regulations – 30.09.2015

The objective of this consultation is to collect further information on the performance of the current legislation and identify measures the Commission could propose to increase take-up of the of EuVECA and EuSEF fundraising passports for venture capital and social entrepreneurship funds.

This consultation takes up the replies received in the CMU consultation and requests more details as to where and how the regulations could be changed to increase the take up of these funds without reducing the existing levels of investor protection.

Regulation on European Venture Capital Funds

The regulation sets out a new “European Venture Capital Fund” label and includes new measures to allow venture capitalists to market their funds across the EU and grow while using a single set of rules. Every fund using the label will have to prove that a high percentage of investments (70% of the capital received from investors) are spent in supporting young and innovative companies. By introducing a single rulebook, venture capital funds will have the potential to attract more capital commitments and become bigger. Bigger venture capital funds mean more capital for individual companies giving them the ability to specialise in particular sectors such as information technology, biotech or life-science. This in turn should help SMEsto have a more competitive edge in the global marketplace.

Text of the regulation as adopted by the European Parliament and the Council (17.04.2013)

Implementing acts

Implementing regulation (EU) No 593/2014 – 03.06.2014

On 3 June 2014 the Commission adopted implementing technical standards for Regulation (EU) No 345/2013 on European venture capital funds (EuVECA). The implementing regulation deals with the format of the notification according to Article 16(1) concerning events related to the passport of the managers of qualifying venture capital funds and to article 21(2)(b) concerning removal of a manager of a EuVECA from the register.

Background documents

Regulation on European Venture Capital Funds: original proposal by the Commission (07.12.2011)

Consultation on a new European regime for venture capital – 15.06.2011

The Commission services launched a consultation on a new European regime for venture capital. The new rules aim at facilitating the cross-border fundraising and investments by venture capital funds. This initiative is one of the key actions to improve access to finance for innovative SMEs, as spelled out in the recently adopted Single Market Act.