Improving Capital Allocation for Newcomers Act of 2021

Bill: 118-hr-2790
Sponsor: full_name: Rep. Timmons, William R. IV [R-SC-4]
Introduced: 2023-04-20
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-04-20
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-04-20
action_desc: Introduced in House
text: <p><strong>Improving Capital Allocation for Newcomers Act of 2021 [<i>sic</i>]</strong></p> <p>This bill revises qualification requirements for venture capital funds. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Currently, an investment firm qualifies as a venture capital fund if, among other requirements (1) the fund's securities are owned by 250 persons or less, and (2) the fund has $10 million or less in aggregate capital contributions and uncalled committed capital. The bill increases these amounts to 2000 persons and $150 million, respectively. </p>

tv_txt: I 118th CONGRESS 1st Session H. R. 2790 IN THE HOUSE OF REPRESENTATIVES April 20, 2023 Mr. Timmons introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Investment Company Act of 1940 with respect to the definition of qualifying venture capital funds, and for other purposes.

1. Short title This Act may be cited as the Improving Capital Allocation for Newcomers Act of 2021 . 2. 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 striking 250 persons and inserting 2,000 persons ; and (2) in subparagraph (C)(i), by striking $10,000,000 and inserting $150,000,000 .