The EU Commission aims to lure 45 billion euros in reserved money. Additionally, they will analyze how startups can offer stocks to new employees.
The EU plans to increase deep-technology startups within Europe by luring 45 billion euros in reserved money, making it increasingly easy for the creators to retain control of the firm when it becomes public.
The EU Listing Act will enable “founders and families to retain control post-listing, while raising a larger amount of funds and enjoying the benefits associated to listing,” stated the draft of the new digital modernization strategy.
Less deep techs than China and the US
Compared to China and the US, the European Union has fewer deep-techs. The EU Commission said that it’s because the market for venture capital is so ‘fragmented and risk-averse nature.’ At the same time, conventional products such as bank loans have a more crucial role in funding startups than other resources such as equity funding, etc.
“Europe needs to draw in institutional investors to invest in deep-tech innovations,” Commissioner Mariya Gabriel, Commissioner for Innovation, Research, Culture, Education, and Youth, said at the EIA Summit last week.
“Increasing the proportion of European capital invested in innovative companies and startups is one of our main objectives. This can result in companies relocating their corporate headquarters to Europe.”
The EU commission’s strategy will include the following:
- A ‘Listing Act’ for streamlining listing needs for companies and organizations, suggesting countries throughout the European Union match regulations concerning ‘dual-class share’ organizations. As of now, all stock exchange markets within the EU sets their rules
- Enabling countries to employ state ‘aid’ to test and experiment with infrastructure
- Enforcing ‘Regulatory sandboxes’ to experiment with flexible regulations along with specific testbeds focused on commission-backed artificial intelligence and renewable hydrogen experimentation facilities
- Forming a group to assist startups in offering stocks to new workers
The commission also wrote in a draft that the European Union is losing the worldwide race for new talent, with academics and researchers moving to America in bulk.