Brussels, 20/07/2006 (Agence Europe) - On 19 July, the European Commission authorised €100 million of public funding for risk capital funds in southern Italy investing in innovative small and medium-sized enterprises (SMEs) predominantly in their early stages. “I am pleased to approve aid which promotes the use of risk capital in regions where companies currently mostly have to incur debt in order to finance their start-up and growth,” said European commissioner Neelie Kroes. The aid is granted to SMEs in regions with an abnormally low standard of living or with high unemployment, and to SMEs located in neighbouring areas which are suffering the same handicaps with regard to equity funding, says a Commission press release.
The press release stresses too that, for the first time, the Commission has approved aid which will support 50% of the scouting costs of fund managers. These are costs linked to the selection of companies by the funds (see EUROPE 9236 on the new rules adopted by the Commission to evaluate state aid which aim to promote risk capital investment in SMEs).