Venture capital has reached SMEs

Integral service around a transaction
BY : Diego GutiérrezJuly Mon, 2014
venture_capital-The government wants to improve access to direct financing for SMEs. To this end, this Friday it approved the draft law regulating venture capital entities and closed-end collective investment entities, which includes the creation of the figure of Capital-Riego pyme and a series of reforms in venture capital entities that establishes the harmonised framework of conditions for authorisation, marketing, conduct and organisation of the managers of these investment funds at European level.

SME Venture Capital

The project envisages that these identities will invest at least 70% of its assets in SMEs and will be involved in managing and advising them. In return, they will benefit from a more flexible financial regime, such as greater use of equity loans, more flexibility in the calculation of compliance deadlines for the mandatory investment ratio and the possibility for venture capital funds to distribute results on a regular basis.

"This legislative initiative joins the initiative of Fond-ICO by which the Government has opened several calls for co-investment with private venture capital mainly oriented to SME growth projects and investments of the type venture capital is for high-growth companies," says Diego Gutierrez from Abra Invest.

New adjustments to risk capital identities

The new regulation envisages the reduction of administrative burdens by maintaining the authorisation regime exclusively for their managers. Venture capital and private equity investment The closed-end collective investment schemes will be subject to a simpler regime of simple registration with the CNMV (Comisión Nacional del Mercado de Valores).

Structure and organisational requirements are also envisaged to ensure control of risks, liquidity and conflicts of interest.

In addition, the remuneration policy, which shall be approved by the management body and periodically evaluated, must be compatible with the company's business strategy.

The marketing of VCs is limited to eligible investors, investors 100,000 and declare in writing that they are aware of the risks associated with the intended commitment.

In addition, the regime for cross-border marketing and management of mutual funds is also included. investment alternative investment funds managed by European and foreign management companies, thus promoting an internal market for alternative investment funds.

Other posts that may interest you

SMEs, how does the government's growth plan affect you?

Recovery of venture capital in Spain in the first quarter

Government allies with venture capital for SME financing

The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?