A boost from Europe for start-ups and scale-ups
The European Commission is committed to encouraging start-ups to scale-up in other European countries.
Last November, the European Commission presented its strategy to better support start-ups and scale-ups across Europe. It aims to improve the environment for start-ups and encourage them to operate cross-border and within other Member States. However, too often, these companies are prevented from doing so by regulatory obstacles and red tape.
This initiative does not present a new legislative proposal per se. It identifies the difficulties faced by these companies. It lists concrete measures in order to further coordinate the European policies in favor of start-ups and scale-ups and to facilitate their access to financing.
These measures are notably:
1. The creation of a pan-European Venture capital Fund of Funds: the investments of up to €400m will be capped at 25% of the total capital in the Funds of Funds, bringing a potential of at least €1.6bn additional investments to Venture Capital in Europe.
2. A legislative proposal on insolvency law allowing companies in financial difficulties to restructure early and offering a second chance to young entrepreneurs.
3. Tax simplification in order to reduce the burden on start-ups (measures on VAT simplification, in particular a definitive VAT regime for cross-border trade within the EU and on a common consolidated corporate Tax base).
4. Further support in coordinating the start-up’s eco-system through the connection with the right partners, accessing commercial opportunities, and recruiting employees with the right skills.
Orange is also involved in this effort to boost start-ups:
- Orange Digital Ventures is an investment fund which aims to better support start-ups in countries where Orange operates. It mainly focuses on start-ups looking at new technologies and digital services in Finance, Big Data and Internet of things.
- Orange Fab is a three-month programme start-up accelerator at Orange. It seeks to support start-ups in their business development and in facilitating their access to potential markets represented by Orange and its partners. The Orange Fab network has 12 structures across four different continents.