"More than 90 percent of the venture capital firms in the emerging markets of Africa, Asia, Europe, Latin America and the Middle East look to investors in the EU as a critical source of funds," said Sarah Alexander, president and chief executive officer of the Emerging Markets Private Equity Association. "The requirements contained in the proposed AIFM legislation will create a considerable burden on these firms and compromise fundraising efforts in the EU, consequently choking off important sources of capital to the world's poorest countries. We hope the directive will be amended to allow fund managers to raise money in Europe under the existing regime which has been working for years."
The Global VC Congress is calling on European legislations to take the greatest care in the rule-making process and to introduce a specific tailored regime exempting venture capital from unjustified and excessive regulatory burdens both at fund and portfolio company level.
“During efforts for meaningful financial reform in the United States, Congress agreed that venture capital did not pose significant financial risk and passed an exemption for venture firms from additional regulation,” said Mark Heesen, president of the U.S. National Venture Capital Association. “In doing so, U.S. legislators demonstrated much needed support for investment in emerging growth companies. We hope the EU will follow suit and protect the companies that are so critical to ongoing economic growth and innovation around the world.”
© Evening Standard
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