Scope of Law 22/2014 on venture capital entities and new flexible investment regime

Scope of Law 22/2014 on venture capital entities and new flexible investment regime

Abstract:

The new law applies to any closed-ended investment entity, as defined in the law. Such entities are vested greater flexibility as compared to venture capital entities. As a result, a number of companies investing in unlisted securities but not meeting the investment requirements of venture capital entities will be now regulated by the new law. On the other hand, the new law has softened the investment regime for profit-sharing loans and the investment ratios in order to foster venture capital activity.

Keywords: Law 22/2014, closed-ended investment entities, venture capital entities, investment regime, profit-sharing loan