The Government reduces to 10,000 euros the minimum for retailers to invest in venture capital – CVBJ

Updated Thursday, December 30, 2021 – 17:09

Retailers will have to access these investments under the advice of an entity

The First Vice President of the Government and Minister of Economic Affairs and Digital Transformation, Nadia Calvio.JAVIER BARBANCHOMUNDO

The Government has reduced the initial minimum investment that retail investors can make in venture capital, to 10,000 euros, compared to the 100,000 that are required so far. The change, approved by the Council of Ministers on November 30, is included in the bill that has already been sent to Congress.

The retailers’ access to risk capital will have to be under advice – from an entity authorized to provide this service – and without these exceeding 10% of their portfolio as a whole (if it exceeds 500,000 euros), according to Europa Press, which has had access to the document.

According to the government published after the Council of Ministers, the rule, known as the Crea y Crece law, would incorporate measures “to improve the financing instruments for business growth that are alternative to bank financing, such as crowdfunding or participatory financing, collective investment and venture capital “.

In the latter case, the Executive announced that it would expand “the type of companies in which these entities can invest, including financial companies with a high technological component.” The First Vice President of the Government and Minister of Economic Affairs and Digital Transformation, Nadia calvio, explained that the objective of the regulation was to promote the creation of companies, facilitate their expansion and, finally, improve the business climate throughout Spain.

In addition, the modification will include investment in financial entities whose activity is based mainly on the application of technology to new business models, applications, processes or products as the main object of venture capital.

The new law, to which the congressional groups can still submit amendments, also homogenizes venture capital entities-SMEs with the figure of European venture capital funds. Thus, the maximum number of employees of the companies object of activity is made more flexible, go from 250 to 499.

The Government, according to the impact analysis included in the document, believes that these measures will help improve the functioning of venture capital entities, which it considers will be relevant for the European economy and its financing. The Crea y Crece law directs -as specified- these tools to investment in startups, which he defines as entities whose activity is mainly based on applying technology to products, processes, applications or business models.

In his opinion, by accessing more financing, companies will be able to increase their competitiveness and thus be at an advantage over their rivals. All of this, finally and according to the Government’s plan, will have an impact on job creation and investment in innovation.

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