BVCA Responds to the Europe 2020 strategy
Responding to the publication of the Europe 2020 Strategy, Simon Walker, Chief Executive of the British Private Equity & Venture Capital Association, said:"We applaud the European Commission's plan to create an efficient European venture capital market. Venture capital plays a vital role in generating jobs and economic growth in the EU and any measures designed to make access to capital easier for start-up companies is to be welcomed.
"However, this sits at odds with the proposed Alternative Investment Fund Managers (AIFM) Directive which in its current draft would severely damage venture capital investment in the EU. If enacted it would impose crippling capital requirement levels, dramatically increase disclosure costs and severely restrict the ability to raise funds outside the EU to the extent that VCs could lose access to around 20% of investors.
"We therefore urge changes to the directive to mitigate the damaging impact it could have on VCs and entrepreneurship across Europe."
FOR FURTHER INFORMATION PLEASE CONTACT
Tom Allchorne, BVCA: +44 (0)20 7420 1807
Notes to editors:
1. The Europe 2020 Strategy can be viewed here
2. The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.