Venture Capital Funds

Profession:Macedo Vitorino e Associados

Decree-Law 187/2002, of 21 August 2002, sets up the legal regime of a new type of funds, the so called "venture capital funds" (Fundos de SindicaÁ„o de Capitais de Risco - "FSCR").

Up until the approval Decree-Law 187/2002, the Portuguese venture capital market was restricted to a small number of large international and local financial investors, thus reducing start-ups access to capital unless they had strong financial back up.

FSCRs are collective investment vehicles that will be investing in securities issued by start-ups. Through FSCRs, the government wants to create a regulatory regime for funds specialising in securities issued by small and medium sized companies, promoting the incorporation of start-ups with innovative projects as well as to give to exiting SMEs access to wider financial markets. From the investors' point of view, venture capital funds will...

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