To amend the Investment Company Act of 1940 with respect to the definition of qualifying venture capital funds, and for other purposes.
Sponsors
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Banking, …
Passed House (inferred from eh version)
Additional sponsor: Ms. Pettersen
Reported with an amendment, committed to the Committee of the …
Mr. Timmons introduced the following bill; which was referred to …
Summary
What This Bill Does
Dramatically expands the qualifying venture capital fund exemption by increasing the investor limit from 250 to 2,000 persons and the asset threshold from million to million.
Who Benefits and How
Venture capital funds gain ability to raise more capital from more investors without registering as investment companies. Startups benefit from larger potential funding pools. Investors gain more VC fund access.
Who Bears the Burden and How
SEC loses oversight of larger, more investor-heavy venture funds. Investor protection may decrease for funds no longer subject to Investment Company Act registration.
Key Provisions
- Increases investor limit from 250 to 2,000 persons
- Increases asset threshold from M to M
- Amends Section 3(c)(1) of Investment Company Act of 1940
- Expands exemption from Investment Company Act registration
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
Increases qualifying venture capital fund limits from 250 investors/M to 2000 investors/M
Policy Domains
Legislative Strategy
"Reduce regulatory burden on venture capital formation"
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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