To require the Securities and Exchange Commission to revise the definition of a qualifying investment to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, and for other purposes.

Bill: 117-hr-4227
Sponsor: Rep. Hollingsworth, Trey [R-IN-9]
Introduced: 2021-06-29 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Financial services and investments
Securities
Securities and Exchange Commission (SEC)

Summary:
action_date: 2021-06-29
text: 

Developing and Empowering our Aspiring Leaders Act of 2021 
 
 
This bill directs the Securities and Exchange Commission to revise venture capital investment regulations. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments&#8212;which include secondary transactions and investments in other venture capital funds&#8212;may comprise up to 20% of a venture capital fund. 
 
The bill allows investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately (1) be acquired directly, or (2) be investments in other venture capital funds. 
 

action_date: 2022-07-26
text: 

Developing and Empowering our Aspiring Leaders Act of 2022 
 
 
This bill directs the Securities and Exchange Commission (SEC) to revise venture capital investment regulations if the SEC determines such revisions would facilitate capital formation without compromising investor protection. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments&#8212;which include secondary transactions and investments in other venture capital funds&#8212;may comprise up to 20% of a venture capital fund. 
 
The bill allows, after SEC approval, investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately be acquired directly from a qualifying portfolio company. 


Legislative actions:
action_date: 2022-07-27
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2022-07-26
text: The title of the measure was amended. Agreed to without objection.
action_date: 2022-07-26
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2022-07-26
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H7152)
action_date: 2022-07-26
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H7152)
action_date: 2022-07-26
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 4227.
action_date: 2022-07-26
text: Considered under suspension of the rules. (consideration: CR H7152-7153)
action_date: 2022-07-26
text: Ms. Waters moved to suspend the rules and pass the bill, as amended.
action_date: 2021-06-29
text: Referred to the House Committee on Financial Services.
action_date: 2021-06-29
text: Introduced in House
action_date: 2021-06-29
text: Introduced in House