A New Scheme for Encouraging Foreign Investors to Come to Malta
The Government has released a new investment program, called Venture Capital Malta (VC-MT) in order to encourage foreign investors to set up companies here. The new scheme was developed in collaboration with Malta Investment Management Company, Malta Enterprise and financial services providers operating in the private sector. The VC-MT will provide start-up companies in Malta to access funds through private equity or venture capital.
What does Venture Capital Malta entail?
Through Venture Capital Malta, the Government wants to create a platform through which Maltese companies which cannot access loans through traditional means, gather funds from private venture capitalists and other organizations interested in new investment opportunities. This way, small companies would obtain financing through private equity. Venture Capital Malta will not be supported by the Government, its main purpose being to attract foreign investors to the country. Governmental representative say that VC-MT is highly likely to help companies in the creative industry which do not benefit from much support at the moment. Maltese companies will benefit from guidance when signing up for the VC-MT program.
What is the main purpose of Venture Capital Malta?
As an EU member state, Malta offers numerous facilities to foreign investors. Even so, the Government has decided to implement the Venture Capital Malta program in order to promote the financial industry among international key players who are interested in investing in the EU. Venture Capital Malta was intensively promoted by being launched in cities like London where the Government hopes to find high-profile investors. The Government also wants to promote Malta as a venture capital destination through this scheme.
During the last few years, Malta has launched several programs in order to support start-up companies and Venture Capital Malta is based on European funding mechanisms which can help local companies to tap into foreign equity financing easier. This will also improve Malta’s image among the international business community which will become interested in setting up their own enterprises here, not only to sponsor local ones.
For assistance in tapping into VC-MT, you can contact our Maltese law firm.
