TechCapMarkets: Improving access for innovative SMEs to Funding via EU Capital Markets

Projektinformationen

TechCapMarkets

ID Finanzhilfevereinbarung: 792306

DOI

10.3030/792306

Projekt abgeschlossen

EK-Unterschriftsdatum 4 Mai 2018

Startdatum 1 April 2018

Enddatum 31 März 2020

Finanziert unter

• PRIORITY 'Industrial leadership'

Gesamtkosten

€ 547 650,00

EU-Beitrag

€ 547 650,00

Koordiniert durch

TECH TOUR EUROPE SA
Belgium

Periodic Reporting for period 2 - TechCapMarkets (TechCapMarkets: Improving access for innovative SMEs to Funding via EU Capital Markets)

Berichtszeitraum: 2018-10-01 bis 2020-03-31

Zusammenfassung vom Kontext und den Gesamtzielen des Projekts

TechCap Markets addresses 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

TechCapMarkets pursues 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.

Arbeit, die ab Beginn des Projekts bis zum Ende des durch den Bericht erfassten Berichtszeitraums geleistet wurde, und die wichtigsten bis dahin erzielten Ergebnisse

In this context TechCapMarkets deals with the specific task of improving the supply of alternative finance to innovative SMEs, by examining ways to improve the opportunities for fast-growth tech companies to list on European stock exchanges. And in turn, improve the exit, return, and opportunities for private market tech investors.

A High-Level Advisory (HLAG) composed of senior market experts was recruited with 10 members to provide senior, strategic counsel and market knowledge to the consortium partners and act as high-level ambassadors for the project, in particular during the phase post the production of the whitepaper.

The HLAG convened several times to discuss and agree on the project approach and the market challenges and opportunities faced by both tech investors and entrepreneurs to access financing or exits, via public markets.

Based on the research and market consultations conducted through experts interviews and a survey, nine potential market challenges were identified by the project partners. The consolidated research and market consultations results were used to produce knowledge for the subjects in a final evidence-based report with clear expert recommendations results in the form of a whitepaper titled Findings and Recommendations: Accelerating alternative finance for innovative SMEs by improving connections with stock exchanges and growth marketplaces.

The knowledge and content collected during the project was turned into training material that was delivered in 3 workshops and 7 webinars, which helped train 297 participants to these activities.

Fortschritte, die über den aktuellen Stand der Technik hinausgehen und voraussichtliche potenzielle Auswirkungen (einschließlich der bis dato erzielten sozioökonomischen Auswirkungen und weiter gefassten gesellschaftlichen Auswirkungen des Projekts)

The TechCapMarkets aims to improve the access of innovative small and medium sized enterprises (SMEs) to alternative finance. Within this

This project is set against the wider backdrop and challenge of ensuring Europe’s most promising, fast-growth and
innovative SMEs have the opportunity to become global leaders while remaining both European and independent.

Through the project, we consulted with a wide variety of stakeholders that all have a key role to play in ensuring high-growth innovative SMEs can realise their potential. These included entrepreneurs, venture capital fund managers, public market investors, investment banks, national development banks and stock exchange operators.

As it may be expected there were different views on specific issues, or the relative importance of some challenges which resulted in the recommendations contained in the report final report. These recommendations are guided by the following principles:
• They will directly, or indirectly, increase the number of public market investors with the knowledge and appetite to invest in European tech companies listed on European stock exchanges.
• They will contribute to enabling European tech companies to achieve sufficient market penetration, scale and valuations, while remaining private, in order that if they do choose to execute an Initial Public Offering, they are relevant to as broad a set of public market investors as possible.

The final report is one important component of the TechCapMarkets project. It gathers and views on the long-term challenges European tech companies face to listing on European public markets, and provides recommendations on how these may be addressed, and where appropriate, gives examples of good, existing practices.

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