The Basque Government has joined the public initiatives to promote the funding to SMEs through alternative instruments to traditional banking instruments such as venture capital.
The Basque Government allocates 28M to the BASQUE FCR venture capital fund
The Basque Government, through the Departments of Economic Development and Competitiveness and of Finance and Treasury, has launched the Venture Capital Fund Basque FCR28 million, to be launched in the coming weeks.
"Basque SMEs, as in the rest of Spain, suffer from excessive bank leverage and low capitalisation. This situation, added to the small size of the companies, makes it difficult for them to compete abroad" comments Diego Gutierrez of Abra Invest.
Also €5M for innovative SMEs
BASQUE FCR is especially designed to support SMEs (for large firms there are already others, such as Ekarpen), this venture capital fund intends to invest in the acquisition of shares in "industrial or service companies related to industry, at any stage of their life", the legal text adds.
In this way, they will also receive funding technology-based or innovative companies. The renewal of the industrial fabric is based on this type of company, where the Basque Country continues to be the benchmark in Spain due to the impact of its research centres and the commitment to R&D by corporations and the Administration.
Similar initiatives in other initiatives
The model of public entity participation in the development of venture capital activity is spreading across Europe. Germany being the reference with High-Tech Gründerfonds In Spain, hopes have been pinned on the impact it will have on financing alternatives. FOND-ICO.
The Basque Government has also left the door open for private capital to enter its fund.
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