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.
1Implementation / enforcement 06/2014 - 06/2016
2Discussion / consultation 06/2016 - 12/2017
3Implementation / enforcement 09/2017 - 03/2018
4In effect 03/2018 -
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.
European venture capital funds (EuVECA)