History
1. Background
2. First Steps
3. Formal Creation
4. Milestones
1. Background
The Commission of the European Communities undertook an analysis of ‘Barriers to Industrial Innovation’ in Europe in 1980; this revealed that, in all the Member States (then 9) of the EC, lack of access by new technology-based firms to suitable finance was a major problem. To help overcome this, and to encourage cross-border operations, the Commission’s Directorate General XIII set up a pilot scheme to support collaboration between national VC companies whose investee companies needed to operate on a broader-than-national scale. The scheme was limited to one VC company from any Member State, and it started in October 1980 with four: Sofinnova from France, TDC from the United Kingdom, Prominvest from Belgium, and Eurabelge (IMI Group) from Italy. The scheme’s Steering Committee, usually chaired by Dennys Watson of DG XIII, started by meeting about every two months, and at first there were only few investee companies put forward by the participants – who were perhaps a little wary of revealing details of their portfolio to others. But, as the benefits became evident, and initial hesitations were overcome, the ‘deal flow’ increased, and meetings more frequent. By the end of 1981, companies from three more Member States had joined the scheme: WFG from the Federal Republic of Germany, Parnib from the Netherlands, and DCC from Ireland. In parallel with this initiative, the Commission organised conferences towards the end of each year in Luxembourg on different aspects of financing innovation, at which participants in the pilot scheme spoke of their experience.
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2. First Steps
By mid-1983, many more VC companies had wanted to join the pilot scheme: but EC funding for pilot operations were very limited, and evidence was already accumulating of the advantages of cross-border collaboration, and syndicated investments. So the Commission convened a meeting in June of European VC companies and other interested parties, to see whether there would be enough interest to justify setting up a European-level association. The participants were generally favourable: so small working groups of volunteers were created, to consider different aspects of a possible association – objectives, operational methods, finance, membership qualifications, etc. – who were to meet again and present their recommendations at the end of August.
At that second meeting, a larger number of participants turned up (in spite of the holiday period!): and, although at that stage the Commission was not in a position to promise financial support, the meeting was strongly in favour of going ahead, generally on the basis of the detailed recommendations of the working group reports. Thus EVCA was very provisionally set up on 31 August 1983 – without officers, secretarial support, premises or a printed constitution, but with a lot of enthusiasm.
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3. Formal Creation
EVCA’s inaugural general meeting was held on 9 November 1983, with 36 full members and 7 associate members. After provisionally chairing it for about two minutes, Dennys Watson proposed that the chair be taken by Christian Cleiftie of Sofinnova, who was unanimously elected; as he had been an active participant from the start of the pilot scheme, this was wholly appropriate. Furthermore, a number of members of the first Board of Directors had also been closely involved in that scheme, and thus were accustomed to working together.
Happily, the EC Council of Ministers approved a programme of support for industrial innovation not long after this, and thus the Commission was able to provide some initial financial support to EVCA, on a diminishing period over three years, which helped to cover the costs involved in finding an office, a Secretary General and staff. At the end of that 3-year period, EVCA was able to stand on its own feet, but continued to work closely with the Commission in operating such initiatives as the Venture Consort Scheme. The association had also begun a wide range of training and other activities, progressing steadily in its membership and scope to its present position. Many of the individuals who initially supported the idea of setting up EVCA continued to play an active part in its operations over the last eighteen years.
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4. Milestones
1983
EVCA was founded.
1985
The Venture Consort Programme was launched in co-operation with the European Communities. Its goal was to increase financing for SMEs involved in new technologies through the creation of cross-border syndicates of venture capitalists.
EVCA undertook the first Annual Survey of Pan-European Private Equity and Venture Capital Activity.
This annual EVCA initiative surveyed private equity from venture to buyout.
1987
The first EVCA Institute private equity management training course took place in Brussels, Belgium.
1988
The European Seed Capital Fund Scheme was launched and continued until 1995.
The scheme’s goal was to encourage private investment into innovative, technology based young firms.
It was the precursor to the EVCA Technology Investment Conference.
1993
EVCA launched a private equity support programme for Central and Eastern Europe. This pilot programme was financed by the European Union’s PHARE programme and focused on strengthening the private equity capital infrastructure of Central and Eastern Europe.
EVCA published its first performance and measurement valuation guidelines for the private equity and venture capital industry.
1994
EVCA co-ordinated a capital markets working group, which led to the creation of the European Association of Security Dealers (EASD). EASD’s establishment resulted in the creation of EASDAQ in 1996.
1995
EVCA launched the first EVCA White Paper, outlining its policy priorities.
1996
EVCA published the first Economic and Social Impact Study of Venture Capital in Europe, in association with Coopers & Lybrand.
EVCA organised the first Technology Investment Conference in Brussels, Belgium.
EVCA published the first ever European private equity performance figures, with the view that high quality performance data was an essential step in persuading institutional investors to allocate a significant part of their assets to European private equity.
1997
EVCA launched a pilot programme, the Newly Independent States (NIS) Venture Capital Programme to support the development of venture capital in the former Soviet Union by providing training courses and networking opportunities for venture capital operators. This was financed by the TACIS programme of the European Union.
1999
EVCA held its first International Investors Conference in Zurich, Switzerland.
2000
EVCA published its first industry guidelines for reporting to investors.
2001
With funding from the European Union Gate2Growth programme, EVCA launched its Entrepreneurship Education Programme, with the aim to raise the awareness and understanding of private equity and venture capital among potential entrepreneurs about the use of venture funding in starting and growing a business.
EVCA published an update of its Valuation Guidelines.
EVCA launched the first European research into corporate venturing activity, explaining why and how these activities take place. EVCA also published the first Economic and Social Impact Study of Buyouts.
2002
EVCA launched a Quarterly Activity Survey and a monthly Barometer of macro-economic variables influencing the private equity and venture capital industry. EVCA also launched the second survey of the Economic and Social Impact of Venture Capital.
2003
EVCA celebrated its 20th anniversary at its annual Symposium in Vienna, Austria.
EVCA issued the Governing Principles and Sound Practices for Establishment and Management of Private Equity and Venture Capital Funds. EVCA also produced and published the first ever Benchmarking Paper: Indicators of Tax and Legal Environments favouring the Development of Private Equity and Venture Capital in European Union Member States.
2004
EVCA defined its new Strategic Priorities for the next three to five years.
EVCA held its Central and Eastern European Policy Meeting to discuss how value creation could be fostered in the European Union accession countries.
2005
EVCA presents its Public Policy Priorities for the forthcoming years including nine priorities and measures for policymakers to help achieve the European Union’s Lisbon objectives of growth, competitiveness and innovation, through the private equity and venture capital industry.
AFIC, BVCA and EVCA develop the International Private Equity and Venture Capital Guidelines. 30 national and international private equity and venture capital associations endorse the guidelines. An independent board is created to monitor market practices in the use of the guidelines.
EVCA publishes Corporate Governance Guidelines for the management of portfolio companies and issues a binder with a complete set of multi-jurisdictional Professional Standards.
2006
EVCA releases the third ‘Benchmarking European Tax and Legal Environments’ enabling comparisons to be drawn between tax and legal environments across 25 European countries, to the extent that they affect the development of private equity and venture capital and encourage entrepreneurial activity.
EVCA publishes new EVCA Reporting Guidelines at the EVCA Symposium 2006, Monaco, which supersede the previous guidelines issued in March 2000 with effect for reporting periods ending after 30 June 2006.
EVCA continues to maintain a dialogue with regulators, trade associations and relevant stakeholders on the main issues of concern to promote the development of the private equity industry. Simultaneously EVCA revisits and enhances substantially its work towards political parties and policymakers.
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