However, according to
Commenting on the findings, Jeremy Coller, CEO, Coller Capital, said: “There is a paradox here. In principle, all European governments are strong supporters of venture capital because it establishes and grows new businesses. However, investors do not believe the good intentions of European governments are reflected in their actual policies.”
Alistair Darling’s decision in his first Pre-Budget Report to increase the effective rate of taxation for most successful entrepreneurs by 80%, from 10% to 18% is one such example over which LPs are voicing concern.
Coller concludes: “It’s perception that counts here. If institutions see European government attitudes as unhelpful, they will be reluctant to invest in European venture – with negative consequences for the creation of businesses and jobs in Europe. The venture capital industries in the United States and Asia are currently far more popular with investors.”