Business Angels Europe (BAE), INSME Member, and Invest Europe published a joint paper titled “Turning start-ups into scale-ups – Incentivising the role of early-stage investors” at the occasion of “Startup to Scaleup in Europe: The Role of Business Angels” event, held on the 8th and 9th of March and co-organised with France Angels. In this paper, both associations argue that specific changes – from the EU sophisticated investors’ treatment to tax incentives and marketing passports – could unleash the potential of tens of thousands of investors across Europe.
Interestingly, the research found that “while the right focus has been put recently on the creation of scale-ups that have the potential to become unicorns, it is essential that EU policymakers continue developing initiatives focusing on start-ups at the lower end of the spectrum – as these remain the basis of the innovation pyramid.”
These initiatives should specifically focus on facilitating private investments, such as venture capital investors and business angels deliver. Investing in the earliest stage of a business growth path requires an astuteness to risk assessment, an agility in strategy and a flexibility in execution, that are rarely matching the standard conditions of lenders or public funding.
Read the full paper here.