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BVCA Chairman and Director met Maria Luís Albuquerqueis, European Commissioner for Financial Services and the Savings and Investments Union in Sofia and presented its policy recommendations.

A historical step back and concrete suggestions for action.

For over ten years, BVCA has been dedicated to educating and popularising topics such as the workings of the private equity and venture capital industry, and the best strategies for start-ups or scale-ups when engaging with investors. Although it has been difficult to start almost from scratch when fund managers began their journey, nowadays Bulgaria boasts a mature ecosystem of local founders with global achievements, R&D centres, and fund managers raising their second or third fund, increasing their private investment while reducing public support from anchor investors. Moreover, Bulgarian VCs and PEs are the most active investors in SEE, expanding their investment reach worldwide, according to BVCA’s latest annual report.

Despite its achievements – generally in the private sector – national legislation governing the industry needs to be drastically modernised and the red tape reduced. For example, Bulgaria is lacking behind significantly, when it comes to pension funds and insurance companies investing in private equity and venture capital. Particularly in terms of national legislation, it is the only country in the EU, where private investment funds are “Not allowed” (FDI), or the terms “private equity”, “venture capital” and “risk capital” do not exist, according to OECD publication: Annual Survey of Investment Regulation of Pension Providers 2024.

At European level, the situation does not differ dramatically, but the perspective shifts to the bigger picture, framed through the lens of a single market. During working groups and meetings with the European Commissioner for Start-ups, Research and Innovation, as well as in-person bilateral meetings with the European Commissioner for Financial Services and the Savings and Investments Union, BVCA presented three concrete recommendations:

Cut One-Third of Red Tape: Reduce European regulations by one-third within 12–18 months under the leadership of the European Commission. This would send a strong signal to voters and national governments while addressing a strategic necessity recognised by most major European countries and politicians. The EC should be a leader of these efforts. Importantly, this deregulation effort should be co-led by an external body, as those within the system may find it challenging to dismantle structures they have spent years developing and maintaining.