The European Commission has opened two consultations on the regulation of European venture capital funds.
The initiative aims to improve access to finance for innovative companies and to harmonise rules across member states. Feedback from stakeholders will inform a review of the EuVECA (European Venture Capital Funds) and EuSEF (European Social Entrepreneurship Funds) regulations, as well as potential amendments to the Alternative Investment Fund Managers Directive (AIFMD).
The Commission’s targeted consultation seeks input from fund managers, investors and national supervisors on barriers to cross‑border fundraising, differences in national tax regimes and the administrative burden associated with operating venture funds. A parallel public consultation invites comments from entrepreneurs, start‑ups and other interested parties on how to make EU venture funding more attractive. Responses are due by 12 March 2026 .
The Commission noted that venture and growth capital funds play a crucial role in financing the EU’s green and digital transitions and supporting the bloc’s industrial strategy. However, the current regulatory framework can be complex and fragmented. By streamlining rules and reducing costs, officials hope to encourage more investment into start‑ups and scale‑ups across the single market. The consultation questions cover fund registration, marketing rules, supervisory practices and potential incentives for cross‑border activity.
Reporting from FASI – Funding News observed that the review could broaden the scope of funds eligible for the EuVECA label, thereby attracting more private capital into the EU economy . FASI also highlighted that the initiative aligns with the Commission’s goal of creating a Capital Markets Union, which seeks to diversify funding sources for businesses and reduce reliance on bank lending.
Stakeholders have welcomed the review, noting that it offers an opportunity to address long‑standing issues in Europe’s venture capital ecosystem. “We need a harmonised framework that allows funds to operate seamlessly across borders,” said an executive at a leading European venture capital firm. “Simplifying the EuVECA regime and aligning it with national frameworks will help unlock more investment for innovative companies.”
The Commission will publish a summary of the consultation responses later this year. Any legislative proposals would be subject to impact assessments and negotiations between the European Parliament and Council. With venture capital financing lagging behind that of the United States and China, Brussels hopes the review will boost funding availability and help European start-ups scale up.
