EU founders also will get control: EU deep technology strategy - 45 billion Eur funding, more favorable IPO rules

"On Tuesday, the European Commission (EC) should present a strategy for the promotion of deep technologies, the main axis of which is more favorable IPO rules for startups operating in this area.

 

To promote Deeptech in the European Union (EU), they want to attract 45 billion EUR of funds from the private sector, and to adjust the IPO rules so that after listing the company on the stock exchange, it would be easier for the founders to retain a controlling stake.

 

The EU's proposed act "should allow founders and their families to retain control of the company after listing, raising more funds and taking advantage of the company's listing," according to a new digital innovation strategy plan seen by Bloomberg News.

 

The EU lags far behind the US and China in terms of the number of deep technology companies - according to the EC, this is due to the fragmented venture capital markets in Europe and the fact that traditional banks play too large a role in financing start-ups, rather than alternative sources of funds.

 

The plan includes several key points highlighted by Bloomberg.

 

For example, in addition to simplifying IPO rules, it is believed that the EC will propose to EU countries to unify the regulation of dual class share structures. Now individual stock exchanges determine regulation individually.

 

It will also be proposed to allow state aid for the development of test infrastructure, to promote regulatory "sandboxes" where startups could test their ideas.

 

"Deeptech" refers to those technologies based on a high level of innovation and facing large technological and engineering challenges, the solution of which takes a long time. They have a long innovation cycle, a high market entry risk and risks arising from it. Such technologies currently include artificial intelligence, advanced materials, blockchain, etc."