(Venture capital as an alternative fi nancing source. Its promotion, in
the EU and in Spain)

(Venture capital as an alternative fi nancing source. Its promotion, in
the EU and in Spain)

Abstract:

In the aftermath of the 2007/2008 financial crisis, non-financial companies and households struggled with the credit crunch and the associated difficulties to get
financing. This evidenced both the serious risks and limitations of a financial system excessively dependent on bank financing, and the need for alternative funding sources.

Venture capital is undoubtedly one of the limited number of alternatives of non-bank
financing and it has proven particularly relevant to support the growth of early and mid-stage SMEs and micro-enterprises for which it is hard to get financing via the capital markets and other non-bank sources. Public authorities have embraced venture capital as a significant financing source to fuel growth and job creation and have, to that effect, adopted over the last decade diverse measures to foster its development.

This paper analyzes and reviews the measures that, both at regulatory and practical levels, have been launched in the European Union and Spain, a process still far from complete.

Keywords: venture capital, private equity, alternative finance, capital markets union, crowdfunding, CMU, AIFMD, EuVECA, EuSEF, ELTIF, JEREMIE. EIF.