Ms Regina Breheny:

Yes. I will now deal with initiatives to free up private sector capital. These initiatives should be considered and could include, for example, the establishment of a fund-of-funds mechanism, using a PPP model, in Europe, with preferential treatment for the private sector and the State taking a subordinated position. I think that would be essential in terms of attracting private sector money. This fund would in turn invest in individual venture capital funds. This mechanism could satisfy large investor appetites and create larger pan-European funds that could invest in larger tickets required to scale business.

The venture capital threshold in the alternative investment fund managers directive, AIFMD, of €500 million should be increased to €1 billion to allow bigger funds to be created without undue regulatory issues. We also need a Government or EU initiative to underwrite a liquidity mechanism that allows defined contribution schemes to invest in selected Irish-focused investments such as venture capital. We also probably need some tax relief for retail investors if we are going to encourage them to look at venture capital funds as an asset class.