How do you finance your start-up company?

Small and medium-sized enterprises (SMEs) represent the backbone of the European economy, employing two-thirds of all workers and generating almost 60% of all added value. In addition, start-up SMEs play a decisive role in economic growth. For this reason, the European Union has been working hard for improving the business environment in which SMEs operate – from the 2008 Small Business Act – for a long time.

An important aspect of the functioning of SMEs is their access to funding sources, both equity and debt. While large companies often have access to diversified sources, SMEs – especially start-up SMEs – are often neglected. Therefore, the latest legislative proposal of the European Commission focuses specifically on this aspect of their business, by facilitating their access to the so-called multilateral trading facility (MTF).

MTFs are platforms that are similar to traditionally regulated markets (stock exchanges) as they provide certain standards regarding transparency of operations and enable quick execution of transactions – thereby attracting investors. At the same time, MFTs, with financial instruments traded on them, impose less administrative obligations.

The European Commission seeks to facilitate the access of start-up SMEs to MTFs focusing on SMEs (eg. by simplifying the obligation to publish a prospectus) and, in general, to reduce their administrative burden (eg regarding mandatory disclosures under the Market Abuse Regulation).

In this way, transparent multilateral markets – attracting investors and traditionally reserved for large companies – are becoming easier to access (startup) SMEs. While the only Slovenian MTF (SI ENTER, managed by the Ljubljana Stock Exchange) is not yet specialized for start-up companies, some foreign MTFs are – the closest is the MTF Zagreb Stock Exchange.

Have you considered setting up an MTF as a way of financing your business?

RELATED POSTS
New CJEU ruling on the implementation of the Air Passenger Rights Regulation No 295/91

New CJEU ruling on the implementation of the Air Passenger Rights Regulation No 295/91

On 29 September 2022, the Court of Justice of the European Union (CJEU) issued its judgment in Case C-597/20, ruling…

Read more
As of September 1, 2022, it is only possible to report accidents and injuries through the SPOT portal

As of September 1, 2022, it is only possible to report accidents and injuries through the SPOT portal

On September 1, 2022, the new Regulations on the Reporting of Accidents and Injuries at Work (Official Gazette RS, no….

Read more
JUDGMENT OF THE COURT OF JUSTICE REGARDING THE ACT ON JUDICIAL PROTECTION OF FORMER HOLDERS OF ELIGIBLE LIABILITIES

JUDGMENT OF THE COURT OF JUSTICE REGARDING THE ACT ON JUDICIAL PROTECTION OF FORMER HOLDERS OF ELIGIBLE LIABILITIES

With the adoption of the Act on Judicial Protection Procedure for Former Holders of Eligible Liabilities of Banks (Act on…

Read more

Address:

Dalmatinova ulica 2
SI-1000 Ljubljana, Slovenia

Phone:

+386 59 097 400
+386 59 097 410

Email:

info@s-k.law

Social: