Bill > S3351

This bill requires the Securities and Exchange Commission (SEC) to update regulatory definitions related to venture capital fund advisers within 180 days of enactment. Specifically, the bill expands the definition of a "qualifying investment" to include equity securities from portfolio companies (whether purchased directly or through a secondary market transaction) and investments in other venture capital funds. Additionally, the bill modifies requirements for private funds to qualify as venture capital funds by stipulating that after acquiring an asset, the 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 market transactions. These changes are intended to provide more flexibility for venture capital fund advisers in their investment strategies and align regulatory definitions more closely with current market practices, potentially making it easier for emerging companies and investment funds to access capital and grow.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/3351/all-info