The European Commission has proposed five measures to encourage more business angels (i.e., private individuals who invest in early-stage companies) to invest across the EU (it's reported this week).
The package includes a common accreditation for angel investors and extends an EU investor network to angels. It's part of the EU's Startup and Scaleup Strategy. Angels invest an estimated €1.22bn a year in Europe (EBAN, the European Business Angels Network, the sector's main trade group).
The five measures
The first measure is an EU Innovation Platform that would act as a single point of access for angels and angel network managers to investment-ready projects in EU programs.
The second is a workshop bringing together angels and the crowdfunding platforms. That could then lead on to angel-led fundraising and cross-border deals.
The third is a study with InvestEU Advisory looking at national angel ecosystems and co-investment schemes (where public money is invested alongside private angels) to identify the gaps.
The fourth is a European Angel Accreditation (a fairly standard framework for angel accreditation). The report suggests that EU member states could use this to provide tax breaks and co-investment opportunities to angels from other countries.
The fifth measure would be to extend the European Innovation Council's Trusted Investor Network to angels. This would give them access to the early-stage companies in the EIC's pipeline.
The network currently has 111 members who manage over €300bn in assets (according to the EIC). Membership is currently restricted to qualified institutional investors (VC funds, public banks, foundations, etc.).
What is not known
The reports make no reference to a budget, a timescale, or the name of the Commission document/official behind the plan. The reports give no indication of whether any of the measures would require new legislation.
Angel group wants more
The European Business Angels Network (over 130 member organizations in more than 50 countries) has welcomed the plan.
"We believe the Commission is moving in a very positive direction," said Jesper Jarlbæk, Group President, via tech.eu.
The group would like to see the Commission introduce a single European co-investment scheme in order to reduce the risk for angels and to bring in more capital to startups with scale-up potential regardless of where they are based.
They would also like to see national co-investment schemes introduced in those countries which don't have them.
In October, Jarlbæk said the group was looking forward to "major initiatives in the next month" from the Commission, via the group's website.
The Ouut has not yet requested the Commission's comment.
