Valdis Dombrovskis

  • "Our goal is clear: we want more innovative companies to start in Europe, scaleup in Europe, and compete globally from Europe"

Foreword by Valdis Dombrovskis, Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, European Commission 

Small and innovative companies represent the future of economic activity and employment in Europe. As startups, they are among Europe’s top job creators, accounting for only 17% of employment, but creating more than 42% of new jobs. And as innovators, they will be the ones delivering the products and services on which our future prosperity will depend.

I am delighted that London Stock Exchange Group (LSEG) and its partners have once again put together a report with 1,000 inspiring small and medium-sized European companies. The report itself provides these businesses with a well-deserved showcase to a wider audience of investors, and fills me with optimism about the future of Europe’s entrepreneurs. But it also highlights the challenges we face to ensure these companies can grow and realise their full potential.

Through the Capital Markets Union, the Commission is working to ensure that enough funding can flow from savers and investors to entrepreneurs and small business owners across Europe. With the European Parliament, member states, the business sector, and civil society we are building and improving the ecosystems that smaller and innovative companies need to grow and prosper. Our goal is clear: we want more innovative companies to start in Europe, scaleup in Europe, and compete globally from Europe.

We have already achieved a lot in this regard, in particular to boost early stage funding. As of this year, new rules entered into application for the EU label for Venture Capital funds – EuVECA. They will make it easier for fund managers of all sizes to run these funds, and for a greater range of companies to benefit from their investments. In parallel, we have launched VentureEU, a pan-European Venture Capital Fund of Funds programme, which is expected to trigger up to €6.5bn of new investment in startups and scaleups across Europe.

In March, we presented a proposal to enable the growth of EU crowdfunding platforms, by allowing them to operate across the EU based on a single authorisation. If adopted by the European Parliament and member states, this would help platforms scaleup and offer more choice for investors, and more opportunities for entrepreneurs to attract funding.

Equity finance holds particular promise for firms seeking long-term investment to sustain innovation, value creation and growth. Out of 20 million small and medium-sized enterprises (SMEs) in Europe, only about 3,000 are listed on stock exchanges. To begin to remedy this situation, we have adopted new rules to simplify and reduce the cost of issuing a prospectus. In May, the Commission proposed simplifying rules for SMEs listed on SME Growth Markets, a specific category of trading venue dedicated to small issuers.

This is just a snapshot of our efforts to build a single market for capital in the EU. I call for support to help make a success of this important project, and ensure that we will have many more thousands of companies to inspire Europe in the future. 
 
Small and innovative companies represent the future of economic activity and employment in Europe. As startups, they are among Europe’s top job creators, accounting for only 17% of employment, but creating more than 42% of new jobs. And as innovators, they will be the ones delivering the products and services on which our future prosperity will depend.

I am delighted that London Stock Exchange Group (LSEG) and its partners have once again put together a report with 1,000 inspiring small and medium-sized European companies. The report itself provides these businesses with a well-deserved showcase to a wider audience of investors, and fills me with optimism about the future of Europe’s entrepreneurs. But it also highlights the challenges we face to ensure these companies can grow and realise their full potential.

Through the Capital Markets Union, the Commission is working to ensure that enough funding can flow from savers and investors to entrepreneurs and small business owners across Europe. With the European Parliament, member states, the business sector, and civil society we are building and improving the ecosystems that smaller and innovative companies need to grow and prosper. Our goal is clear: we want more innovative companies to start in Europe, scaleup in Europe, and compete globally from Europe.

We have already achieved a lot in this regard, in particular to boost early stage funding. As of this year, new rules entered into application for the EU label for Venture Capital funds – EuVECA. They will make it easier for fund managers of all sizes to run these funds, and for a greater range of companies to benefit from their investments. In parallel, we have launched VentureEU, a pan-European Venture Capital Fund of Funds programme, which is expected to trigger up to €6.5bn of new investment in startups and scaleups across Europe.

In March, we presented a proposal to enable the growth of EU crowdfunding platforms, by allowing them to operate across the EU based on a single authorisation. If adopted by the European Parliament and member states, this would help platforms scaleup and offer more choice for investors, and more opportunities for entrepreneurs to attract funding.

Equity finance holds particular promise for firms seeking long-term investment to sustain innovation, value creation and growth. Out of 20 million small and medium-sized enterprises (SMEs) in Europe, only about 3,000 are listed on stock exchanges. To begin to remedy this situation, we have adopted new rules to simplify and reduce the cost of issuing a prospectus. In May, the Commission proposed simplifying rules for SMEs listed on SME Growth Markets, a specific category of trading venue dedicated to small issuers.

This is just a snapshot of our efforts to build a single market for capital in the EU. I call for support to help make a success of this important project, and ensure that we will have many more thousands of companies to inspire Europe in the future.