The European Commission Directorate General Internal Market and Services has published a consultation paper on a new European regime for venture capital which aims to address the two problems that venture capital funds that intend to raise funds and invest on a cross-border basis in the EU are confronted with: (i) the fact that they do not benefit from a real internal market; and (ii) the fact that they may face problems of double taxation. The consultation focuses on the creation of an internal market for venture capital. It aims to do this through one of two legislative alternatives: (i) re-examining the suitability of the Alternative Investment Fund Managers Directive in relation to certain venture capital funds; or (ii) creating a system tailor made for the needs of venture capital as a stand alone initiative.