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VC internationally and in Greece
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Venture capital internationally

Venture capital is a financing tool which first appeared in the USA in the 1950s and later made a dynamic entry in the UK and other Western European markets. In Greece it is a relatively new concept (the first legislative framework was adopted in 1988 in the form of Law 1775/88), but over the last five years it has been developing rapidly. Following the stock exchange boom in Greece and the transfer of large capital sums from bank deposits to equity markets, investor enthusiasm has waned and investors are increasingly turning, to medium-term and long-term placements. This has also been the trend in other markets where venture capital has a longer, and successful, track record.

Venture capital financing is through participation in the company's share capital, primarily by means of a share capital increase. It may alternatively be provided in the form of a convertible bond. Venture capital funds generally do not invest in public (listed) companies. The statutory framework currently in effect governing venture capital funds and Attica Ventures (Law 2992/2002) expressly prohibits investments in public companies.

Venture capital firms seek to liquidate their investments and re-invest the capital in new funds. They do not hold on to their portfolio long-term. Investments are made with a medium-term perspective but always with a visible exit route.

The aim of venture capital funds is to contribute as a strategic partner to the rapid development of their portfolio companies, including improvement of their financial structure and profitability.

Venture capital funds effectively share the risk with the entrepreneur(s) and consequently expect to be rewarded with high rates of return, equal to those expected by the entrepreneurs themselves.

The legal framework for venture capital in Greece

Law 1775/88 laid down the first legal framework and was quite unattractive for investors. Law 2367/95, currently in force, attempted to reform the operating framework for venture capital without much success. For this reason, all serious efforts at VC investments were based on off-shore funds, seeking to overcome existing hurdles (primarily taxation issues).

Law 2992/2002 is the latest legislative reform in the venture capital sector, providing favorable tax arrangements and other incentives. Attica Ventures was established under and operates within this framework. At the same time, Ministerial Decree No. 217550 (Government Gazette B/1544) refines and lays down the terms and conditions under which the New Economy Fund (TANEO) participates in venture capital funds.

Attica Ventures exits Antcor stake to u-blox AG
Event to mark the tenth anniversary of the founding of Attica Ventures
Significant growth in Attica Ventures' listed investments
Special distinction for Attica Ventures as it wins the ACCI 2011 Increased Employment Award

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