The EuVECA regulation is a special set of regulations that AIF managers can choose to apply if they wish to use the designation EuVECA (European Venture Capital Fund) when marketing venture capital funds. To use of the designation, the AIF manager must be established within the EU, either registered under article 3.3 or authorised under article 6 of Directive 2011/61/EU (the AIFM Directive) and manage alternative investment funds (AIFs) that meet the regulation’s criteria for venture capital funds.
The purpose of the EuVECA designation is to facilitate access to capital for small and medium-sized enterprises at an early stage of development through an EU-wide designation and a marketing passport for venture capital funds. The designation allows marketing to professional investors throughout the EU and, under certain conditions, also to certain non-professional investors, e.g. with a minimum investment of EUR 100,000 and a written risk acknowledgement. Qualifying venture capital funds are AIFs that invest at least 70 percent of their capital in equities or equity-like instruments issued by qualifying portfolio undertakings A qualifying portfolio undertaking is is an entity that, the time of investment, is not admitted to trading on a regulated market or a multilateral trading facility and employs a maximum of 499 persons. Small and medium-sized companies admitted to trading on an SME growth market are also included.
Registered AIF managers must notify the Swedish Financial Supervisory Authority of their intention to use the EuVECA designation when marketing their qualifying venture capital funds. Authorised AIF managers must instead, apply to the Swedish Financial Supervisory Authority for the relevant fund to be registered as a EuVECA fund.
Regulation (EU) No. 345/2013 on European venture capital funds
Summary of: Regulation (EU) No. 345/2013