Title: Supporting America's Innovators Act of 2017
Policy area: Finance and Financial Sector

Summary:
Supporting America's Innovators Act of 2017
This bill amends the Investment Company Act of 1940 to exempt from the definition of an "investment company," for purposes of specified limitations applicable to such a company under the Act, a qualifying venture capital fund that has no more than 250 investors. Specifically, the bill applies to a venture capital fund that has less than $10 million in aggregate capital contributions and uncalled committed capital.
Under current law, a venture capital fund is considered to be an investment company if it has more than 100 investors.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 444 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 444

  To amend the Investment Company Act of 1940 to expand the investor 
limitation for qualifying venture capital funds under an exemption from 
                the definition of an investment company.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2017

  Ms. Heitkamp (for herself and Mr. Heller) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Investment Company Act of 1940 to expand the investor 
limitation for qualifying venture capital funds under an exemption from 
                the definition of an investment company.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Supporting America's Innovators Act 
of 2017''.

SEC. 2. INVESTOR LIMITATION FOR QUALIFYING VENTURE CAPITAL FUNDS.

    Section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-3(c)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        ``(or, in the case of a qualifying venture capital fund, 250 
        persons)'' after ``one hundred persons''; and
            (2) by adding at the end the following:
                    ``(C)(i) The term `qualifying venture capital fund' 
                means a venture capital fund that has not more than 
                $10,000,000 in aggregate capital contributions and 
                uncalled committed capital, with such dollar amount to 
                be indexed for inflation once every 5 years by the 
                Commission, beginning from a measurement made by the 
                Commission on a date selected by the Commission, 
                rounded to the nearest $1,000,000.
                    ``(ii) The term `venture capital fund' has the 
                meaning given the term in section 275.203(l)-1 of title 
                17, Code of Federal Regulations, or any successor 
                regulation.''.
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