The European Parliament Agrees with Proposals to Create European VC and Social Funds
Summary
The new rules on European venture capital and social entrepreneurship funds create a special EU passport for all operators that invest in start-up SMEs and social businesses.The proposals provide a new simple scheme: once a set of requirements is met, fund managers can market their funds across the EU, cutting through current rules on “private placements” that are different in every EU state.The rules also make sure that the funds focus at least 70% of the capital they raise on equity investments in unlisted SMEs or on equity or debt support for social enterprises.After the vote in the European Parliament, the Council is expected to adopt both Regulations on 21 March.They will both enter into force 20 days after their publication in the Official Journal of the European Union which is estimated to be before the summer.