Raising capital for Europe's
growth economy - towards entrepreneurship and a European venture
capital market
Summary
Europe's share of
the global venture capital market is small compared to that
of the US. In order to improve the entrepreneurial spirit of
European companies, all levels of the regulatory structure -
local, regional, national and European - need to implement policies
aimed at making it easier to access capital in a fast and efficient
manner. Venture capital-backed companies have higher growth
and employment rates than other companies: with this in mind,
and the objective of catching up with our transatlantic partners,
the EU has set forth an ambitious plan in this field, the Risk
Capital Action Plan (RCAP), with 2003 the deadline for its full
implementation.
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One year ago, at the Lisbon Summit,
the EU set forth an agenda for creating a dynamic, entrepreneurial,
knowledge-based economy. Venture capital (more commonly referred
to as "risk capital" on continental Europe) was identified
as a key factor in achieving this.
In 1999, Western Europe's share
of private equity and venture capital invested was 20% ($26.8 billion;
€28.5 billion) of the global total of $136 billion (€145
billion). In comparison, the USA saw $97.6 billion (€105 billion)
invested.
