One thing I never quite managed to wrap my head around is the way financing for start-ups works. Well, yeah – I understand how it works and why it works like that. But fact is: A start-up and it´s visionary leaders, taking personal risks to move it forward, should focus on their business entirely and push it towards success. Instead they struggle to get to the next finance round and pay for the essentials.
Markets which make it easy to access funds to grow a business, from my point of view, got it right. It should be easy for small businesses to finance innovation and growth and when a local government is supporting that in a relevant way, thats even better.
In that sense: great initiative in Luxembourg these days, with a deal between the European Funds for Strategic Investments (EFSI) and BNP Paribas in Luxembourg for lending cheap money to innovative SMBs in the marketplace. EFSI pretty much is a tool of the EU Commission to boost innovation and jobs. So say something that the EU is a bad thing. It is not. You can read how good it really is on the EU Commissions website.
Full details on the Luxembourg deal can be found here.