To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in another venture capital fund, and for other purposes.
Sponsors
Ann Wagner
R-MO | Primary Sponsor
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Banking, …
Passed House (inferred from eh version)
Additional sponsor: Mr. Casten
Reported with an amendment, committed to the Committee of the …
Mrs. Wagner introduced the following bill; which was referred to …
Summary
What This Bill Does
Requires SEC within 180 days to revise venture capital fund definitions to include equity securities from qualifying companies (including secondary acquisitions) and investments in other VC funds, with a 49% limit on such investments.
Who Benefits and How
Venture capital funds gain flexibility in investment strategies. Secondary market investments and fund-of-funds structures enabled.
Who Bears the Burden and How
SEC must revise regulations within 180 days.
Key Provisions
- Qualifying investment includes equity from qualifying portfolio companies
- Secondary acquisitions now qualify
- Investment in other VC funds qualifies
- 49% cap on VC fund investments and secondary acquisitions
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Expands venture capital fund qualifying investment definitions at SEC
Policy Domains
Legislative Strategy
"Expand VC fund investment flexibility"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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