Some 52% of investors in Europe feel that increased anti-piracy measures would deter them from funding internet start-ups offering user-uploaded music/videos/books, according to this in-depth study from Booz&Co.
The issue of who owns digital content and who should be punished if it is posted or used without permission is being heavily debated.
We have seen protests against the Stop Online Piracy Act (SOPA) in the US and mounting resistance to the Anti-Counterfeiting Trade Agreement (ACTA) in Europe.
The EU and governments of member countries are looking at a variety of potential changes including everything from clarifying the legal landscape to prosecuting online pirates.
The outcome of these decisions will have a big impact, not only how we live, work and play online but also on industry investment.
Angel investors and venture capitalists in Europe currently invest € 3.8 billion into early-stage companies annually, as well as provide mentoring advice to entrepreneurs.
It has long been speculated that this type of investment would dry up if new rules were introduced, and the study appears to confirm this.
Booz & Company interviewed more than 80 venture capitalists and angel investors in a report that is the first of its kind in the EU and provides real data on how regulatory changes being contemplated could affect growth and innovation online.
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Booz & Company is a leading global management consulting firm, helping the world's top businesses, governments, and organizations.