European Venture Capital Funds Regulation (EuVeCa)

The European Venture Capital Funds (EuVECA) regulation, similar to the EuSEF Regulation, aims at boosting alternative investments in SME companies and is part of the Capital Markets Union plan to mobilise capital in Europe. Venture capital funds comprise unleveraged closed-end funds up to EUR 500m with a lock-in period of five years and invest in start-ups and early stage companies. The EuVECA regulation was introduced to reduce the regulatory burden on venture capital funds compared to other alternative investment funds and to lay down uniform rules for qualifying venture capital funds ensuring an EU-wide-level playing field.

2019
2020
2021
2022
2023
2024
4
1
Implementation / enforcement 06/2014 - 06/2016
2
Discussion / consultation 06/2016 - 12/2017
3
Implementation / enforcement 09/2017 - 03/2018
4
In effect 03/2018 -

STATUS
Regulation on EuVECA has been amended in September 2017. The changes are in force since 1 March 2018.

The regulation was amended in 2017 to extend the range of managers eligible to manage EuVECA funds, increase the list of companies that EuVECA funds can invest in, facilitate easier registration and lower barriers related to cross-border marketing. These improvements allow for wider exploitation of the opportunities provided by EuVECAs. Investment managers are advised to follow developments and consider how their current product portfolio could be extended, given the EuVECA regulation.

Further information:
European venture capital funds (EuVECA)

author
Ivo Habets Senior Manager
Categories: Financial Market Organisation