engleski

EuVECA as an efficient financing instrument for startups in Croatia

Startup companies are very vulnerable and risky part of SME sector, as well as the entire economy. Early stage in company’s life cycle, inadequate income and risky market surroundings disenables these companies from accessing sources of financing within traditional financial institutions. Their sources of financing are usually own funds, family, non- refundable support funds and in developed countries business angels and different forms of venture capital. Recognizing insufficient financial support for startups and SME in general, the EU has started an initiative enabling access to equity financing for these companies. The initiative has been regulatory implemented through European venture capital funds (EuVECA), a specific type of alternative investment fund in the EU. The paper points to expected effects of setting up such funds, their regulatory requirements and their market potential in the EU. The aims of a paper are to discuss and examine equity financing and EuVECA funds as a possible financing opportunity for startups in Croatia. Paper uses quantitative empirical research using survey methodology on the sample of startups in Croatia examining the potential of these companies for equity financing. The paper is also analysing the entire surrounding of equity financing of startups in Croatia from venture capital, support measures of developing agencies and the government as well as EU funds. Special emphasis is given to stimulating framework, access to financial funds and startup companies in urban agglomeration of the City of Zagreb.

Croatia, EuVECA, Equity financing, Startup companies, Venture capital

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