Bill > HR4429

This bill requires the Securities and Exchange Commission (SEC) to update the definition of a "qualifying investment" for venture capital fund advisers within 180 days of the bill's enactment. Specifically, the bill expands the definition to include equity securities from qualifying portfolio companies, whether purchased directly from the company or through a secondary acquisition. The bill also clarifies that investments in other venture capital funds can now be considered qualifying investments. Additionally, the bill mandates that to qualify as a venture capital fund, a private fund can hold no more than 49 percent of its aggregate capital contributions and uncalled committed capital in either other venture capital funds or qualifying investments acquired through secondary acquisitions. This change aims to provide more flexibility for venture capital funds while maintaining certain investment constraints, potentially making it easier for emerging companies to access investment capital and supporting the development of aspiring business leaders.

Business and Industry, Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/house-bill/4429/all-info