Daily Management Review

EU to create a Silicon Valley competitor


11/10/2016


Private venture capital us reducing investment in European startups, so EU authorities have presented plans to create a venture capital fund of € 1.6 billion that will support technology start-ups. EU authorities hope than an increase in investments in innovative companies will help to keep them from fleeing in the United States and other countries outside Europe.



William Murphy
William Murphy
Investments in European start-ups, which in recent years have been hanging at a significantly lower level than that of similar US companies, experienced a sharp decline in the third quarter of this year. According to Dow Jones VentureSource, European start-ups attracted € 2,1 billion from venture capital funds within 464 transactions during this period. This is lower by 32% compared to the second quarter of the current year, and 39% less compared with the third quarter of 2015. In general, over the past year, European startups have attracted a total of about € 5 billion, and their US counterparts - more than € 25 billion. Looking for larger investments and support, some startups have already found investors outside Europe, particularly in the US, which, in turn, weakened the EU's position in the field of new technologies.

To solve the problem of leakage of innovative companies, EU authorities announced creation of a € 1.6 billion venture fund. Its main task will be financial support for technology start-ups. These plans were announced by Head of Commission for Science and Research Carlos Moedas on Web Summit 2016 conference in Lisbon. According to Mr. Moedas, creation of a pan-European venture capital fund will provide "a higher level of investments in a new generation of innovative companies" in Europe. For its part, Brussels will put in € 400 million (share of Brussels in the fund must not exceed 25%). The Commission will hire a private manager, who will head the fund, and will attract other means. According to founders of the fund, the organization has to operate on the territory of at least five European countries to attract such investment. EU authorities are accepting applications from candidates for creation and management of the new fund until January 31, 2017.

source: ft.com






Science & Technology

A Way To Unlock Wannacry Without Ransom Found By French Researchers

China to introduce face recognition payment system

Clues To Ransomware Worm's Lingering Risks Found By Security Experts

Nasdaq Brings ‘Analytics Hub’ To Provide Enhanced Trading Experience

Through XFi Launch, Comcast Moves Closer To Home Connectivity

Is SWIFT really safe?

Uber To Take The Skies To Fly Its Cars

Virtual reality market reaches point of disillusion

Newly Developed ‘Artificial Photosynthesis’ Device Converts CO2 Into Car Fuel

30,000 Fake Accounts Cracked Down Upon In France by Facebook

World Politics

World & Politics

Germany and France set up to stabilize the eurozone

Greek parliament adopts new austerity measures

Academic Says, Trump's Downfall Is Kept At Bay By White Identity Politics

Germany Will Not Sign Any Statement On ‘China's Belt and Road Forum’ Without Equal Rights On Free Trade

The Fear Of Renewed Large-Scale Cyber ‘Ransomeware Threat’ On Monday Grip The World

ASEAN's Next 50 Years Could Be Shaped By These Three Ideas

US to expand the airline electronics ban

South Korea chooses new President