The European Commission proposed on Thursday measures to boost the size of the EU market for venture capital in a bid to diversify access to capital for smaller companies in Europe.
Venture capital funds invest in riskier, emerging firms that are usually shunned by banks and other more conservative investors. The industry is seen as important to foster innovation but remains a small player in Europe with a market of 5 billion euros ($5.55 billion), five times smaller than in the United States.
