Bill > HR4431

This bill aims to modify the Investment Company Act of 1940 by expanding the definition of qualifying venture capital funds. Specifically, the bill increases the number of persons who can be part of such a fund from 250 to 500, and raises the investment threshold from $10 million to $50 million. The legislation also mandates a comprehensive study to be conducted by the Advocate for Small Business Capital Formation five years after enactment, which will examine the impact of these changes on various aspects of startup investments, including geographic distribution of capital, founder characteristics, and industry sectors. The study will be reported to Congress and made publicly available, with a 180-day public comment period following its release. Based on the study's findings, the Securities and Exchange Commission (SEC) may then propose rules to further adjust the person threshold (between 250 and 750) and investment amount (between $10 million and $100 million), but only if the changes demonstrably improve capital distribution, founder diversity, or veteran participation in startup investments. The bill includes an inflation indexing provision to ensure the dollar amount remains relevant over time, and is designed to provide more flexibility and opportunities for venture capital investments in emerging businesses.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/house-bill/4431/all-info