One of the key objectives of the savings and investments union (SIU) is to increase and facilitate access to finance for EU businesses. Similarly, the EU startup and scaleup strategy aims to boost investments in innovative companies. Venture and growth capital funds could play a greater role in providing financing to EU startups, scaleups and other innovative companies. Despite some progress in the past few years, the EU is still falling behind the US, with its venture and growth capital ecosystems remaining fragmented and underdeveloped.
To address this, the European Commission’s Directorate‑General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) commissioned a study aimed at identifying barriers to the scaling‑up of funds investing in innovative and growth‑oriented companies. The study, delivered by Civitta, EBAN and Bourse Consult, identified various barriers – including legal/regulatory, tax and market factors – affecting both venture capital investments across the EU and fundraising from investors, such as insurers and pension funds. The study also presents key trends related to the venture and growth capital segments and its investors.
By identifying the underlying issues and barriers, the study will contribute to informing future policy work in the context of the Savings and Investments Union.
