In order to improve the financing of small and medium-sized enterprises, the European Commission is proposing measures to boost cross-border investments in venture capital funds. According to the Commission, venture capital funds are facing problems in overcoming different national regulations for cross-border fund raising and investment. By mutual recognition of venture capital structures and implementation of mutually accepted rules on supervision and transparency, the Commission believes that existing barriers to cross-border venture capital could be removed. In addition, a better and more uniform regulatory framework will lower operational costs and risks, thus increasing the flow of venture capital and improving the performance of venture capital markets.