The objective of the Venture Finance project was to encourage Small and Medium-sized Enterprises (SMEs) participating in Community Research and Technological Development (RTD) activities, to raise private capital and to provide the Community with appropriate internal and external tools to facilitate this process.
The Venture Finance project objectives were to:
- assess the need for external private capital amongst SMEs participating in Community (RTD) activities
- identify a sample of SMEs participating in Community RTD activities currently seeking capital
- research the process of raising capital amongst those SMEs which have raised, successfully or unsuccessfully, external private capital
- profile selected SMEs which have successfully raised external capital as role models and write these up as success case studies for demonstration purposes
- propose best practice for SMEs involved in Community RTD activities to raise private capital.
This project built on the work undertaken through successive EU funded projects and attempted to develop good practice. The project involved complementary participants including the coordinator - IPS of Belgium who studied high growth companies, Ernst & Young of France who provided assistance and advice to SMEs seeking capital and a professor of business administration specialising in financing growth companies. The activities were logically structured and the output goals were achieved. The project was clearly related to a central theme of innovation ie financing innovation after an R&D project has been completed and was based on a study of firms that had participated in EU funded programmes.