Venture Capital Company in the European Union May Get “Passport”
In new proposals to advance the European Union single market and spur economic growth, venture-capital company in the EU may be granted a "passport" to invest anywhere in the region. Funds that are established in one member state would be allowed to invest in any other member state under the proposal.
The EU agreed last year to give private equity managers access to investors across the region with a single registration in return for signing up to transparency rules. The new proposals would create a similar arrangement for VC firms that support businesses at early development stages. The idea is to lower operating costs and risks for VC firms, leading to more capital flowing into innovate small businesses. The end of 2012 has been designated as a deadline by the EU Financial Services Commissioner to implement new measures to improve the free movement of goods, services and capital in the EU.