Part III Financing Innovation, Start-Ups, Non-Listed Companies, and Infrastructure Projects, 9 Capital Markets Union: Why ‘Venture Capital’ is not the Answer to Europe’s Innovation Challenge
Erik PM Vermeulen
Edited By: Danny Busch, Emilios Avgouleas, Guido Ferrarini
- Capital markets
The Capital Markets Union (CMU) aims to strengthen capital markets and investments in the EU. The rationale behind such a union is that it is necessary to provide businesses, particularly start-up companies, with a greater choice of funding at lower cost. More generally, it is assumed that, in the long-term, greater choice increases access to finance and fosters economic growth. This chapter argues that although the CMU may be a necessary step, it has to be situated in a much broader discussion about how to create successful innovation ecosystems. Such an approach highlights the sector-specific needs of start-ups (and scale-ups) and the importance of mobilizing other players, particularly established corporations.