European Parliament Adopts at First Reading Proposed Regulations on European Venture Capital Funds and European Social Entrepreneurship Funds

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On March 12, the European Parliament adopted at first reading texts relating to the proposed Regulations on European Venture Capital Funds (EuVECAs) and European Social Entrepreneurship Funds (EuSEFs).

The Regulations are expected to make it easier for venture capitalists to attract more capital for start-up companies across Europe, by establishing a single rule book of requirements which will ensure that venture capitalists are no longer required to meet different standards in each member state. The Regulations will also lay foundations for “European Social Entrepreneurship Funds” (ESEFs) which will allow investors to easily identify funds that are focused on investing in European social businesses.

The European Commission published a press release welcoming the adoption of the texts, stating that the Council is expected to adopt the Regulations on March 21, and that the Regulations will enter into force 20 days after publication in the Official Journal of the EU (OJ), which the Commission expects to be “before the summer”.