European Commission plans $47Bn in private capital to fund deep-tech startups
- ByStartupStory | July 6, 2022
According to an EU strategy document seen by Reuters, the European Commission is preparing measures to entice 45 billion euros ($47 billion) in private capital for “deep-tech” businesses, those founded on major scientific or engineering advancements. The publication, A New European Innovation Agenda, noted that a new Listings Act scheduled for later this year will lower the cost of stock market flotations for the businesses.
The initiatives are intended to help the 27-nation bloc catch up with the United States, Japan, and South Korea in cutting-edge technology, venture capital funding, and innovative patents. The EU executive is anticipated to unveil the proposals at a press conference on innovation at 1330 GMT (1500 IST) on Tuesday. The study stated that by 2025, “untapped sources of private capital may be mobilised to the tune of 45 billion euros, and the cost of listing on public markets might also be decreased.”
According to it, under a Listings Act that will be introduced in the second half of the year as a component of the Commission’s Capital Markets Union (CMU) Action Plan, which was unveiled in 2020, companies will find it simpler and less expensive to list on the market.
The act might also suggest harmonising legislative frameworks governing dual class share structures across the EU in order to provide founders more influence after listing, the document stated.
The Commission also suggested a gender and diversity innovation index and said that it will provide guidance on so-called regulatory sandboxes, which may feature laxer restrictions for innovative initiatives, in the first half of the next year.
Follow Startup Story
Related Posts
