Project description
Accessible alternative finance solutions for SMEs
Innovative SMEs and start-ups often require additional funding, either at the outset or during their growth stages. Unfortunately, their ability to innovate and make an impact in the sectors they operate in is hindered by the fact that they find it difficult to acquire these extra funds. Alternative finance like the stock market and other similar options is a possible solution to this issue, but currently, SMEs lack the preparation to use them. The EU-funded TechCapMarkets project aims to solve this issue by developing a tool kit and assembling an advisory group of experts. This will help provide innovative SMEs with the skills and experience required to use alternative finance solutions.
Objective
TechCap Markets 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:
o a whitepaper for exchange operators and policy makers containing best practice in public policy, regulatory environments
and market operations and make recommendations as appropriate
o 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 of 3 partners, designed to maximize the effectiveness of bringing together senior market practitioners and gathering and deploying their expertise. The partners specific expertise covers the individual requirements of the project: EUN - the current relationship between innovative SMEs and alternative finance providers such as BA and VC investors. IESE - world class research capabilities at the nexus of entrepreneurship and capital markets; PMEF - think tank of professionals in financing for entrepreneurs with strong public policy expertise.
Fields of science
Programme(s)
- H2020-EU.2. - PRIORITY 'Industrial leadership' Main Programme
Funding Scheme
CSA - Coordination and support actionCoordinator
1000 Bruxelles / Brussel
Belgium
The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.