Improving access for innovative SMEs to Funding via EU Capital Markets

The TechCapMarkets project will address a specific challenge in improving access by innovative SMEs to alternative finance: the lack of connectivity with exit markets such as stock exchanges and emerging growth markets for trading shares in private innovative SMEs.

This lack of connectivity for both alternative finance providers and innovative SMEs is characterized by:

• Lack of opportunity for Initial Purchase Offers (IPOs) for innovative SMEs in Europe;
• Challenges to trading privately held shares in Innovative SMEs;
• Sub-optimal use of public market investment vehicles in raising venture capital funds;
• Difficulty to raise capital via further issuances by listed innovative SMEs/Tech companies.

It will pursue the following objectives:

• Establishing a High-Level Advisory Group and series of Expert Working Groups and capture the latest market expertise via these groups to deliver:

  • a whitepaper for exchange operators and policy makers containing best practice in public policy, regulatory environments and market operations and make recommendations as appropriate
  • develop a practical “how to” tool kit for innovative SMEs and alternative finance providers to access exchanges
• Produce learning material tailored to different stakeholder groups and prepare and implement a capacity building plan for all stakeholders
• Create awareness about exits to stock exchanges and the use of secondary market places.

The consortium is composed by Europe Unlimited, IESE and PME Finance, bringing together senior capital market experts and covering the entire fintech value chain.

Europe Unlimited – expertise in the current relationship between innovative SMEs and alternative finance providers such as BA and VC investors.

Universidad de Navarra (IESE) – world class research capabilities at the nexus of entrepreneurship and capital markets.

PME Finance – think tank of professionals in financing for entrepreneurs with strong public policy expertise.

AAVANZ coordinated the preparation and submission of the grant application to the call topic Improving access by innovative SMEs to alternative forms of finance and congratulates the consortium for their vision and ambitious goals.