Repost from Fred Destin’s blog, please help campaign against this this directive which would damage VC investments in startups.
Euro Entrepreneurs, time to lobby ! By this Sunday night, April 25, we need to get a significant number of European entrepreneurs to help the European Venture Capital Association in lobbying the EU and signing a petition against this damaging Directive.
Vote against an extensive Directive that will damage European Venture:
The directive sets out a number of measures ill-suited to venture capital and the financing of innovation. This is because it is designed to be a catch-all regulatory blanket that encompasses everyone from hedge funds to venture firms. The impact on both VC firms and startups is potentially significant:
- Discriminatory disclosure requirements and administrative burden affecting startups backed by venture capital
- Cost of compliance estimated at €30,000 per year for your companies
- Absurd capital requirements imposed on venture firms
- Requirement to use outside depositaries (i.e. custodians) and independent valuation agents, adding cost and complexity
There is a detailed review of these measures on EVCA.eu under “AIFM Directive”. Link. In a striking survey, the EVCA finds that 2/3 of investors questioned would reduce allocations to venture as a result of proposed regulation. Link.
By emailing EVCA you will become a co-signatory to a letter published below, prepared by a fellow entrepreneur, Tom Van Aken of Avantium:
We represent a slice of the 25,000-plus population of European businesses that currently benefit from private equity and venture capital support. We are therefore increasingly alarmed by proposals within the EU’s draft Alternative Investment Fund Management Directive that would prejudice private equity and venture capital-backed companies such as ours, and ultimately restrict access to finance for Europe’s growth companies.
Send a mail to firstname.lastname@example.org stating name, company name and HQ location and titled “Entrepreneur Petition against AIFM Directive”