Should we permit more investors to participate in an “early-stage” venture capital fund before the fund is required to register with the SEC?
Bill Summary
This bill amends an exemption by increasing the investor limitation from 100 qualified investors to 250 before a fund is required to register with the SEC.
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Opponents say
• The bill would not only allow another investment vehicle to operate without regulatory oversight, but also allow an investment adviser that is not licensed or examined to manage funds. - North American Securities Administrators Administration (NASAA), in a letter opposing this bill in the last session of Congress.
• This bill is another attempt at deregulation.
• This bill is another attempt at deregulation.
Proponents say
• By raising the ceiling of the number of accredited Investors from 100 to 250 before SEC registration is required, this bill incentivizes more Venture Capital investment.
• According to the Bill's sponsor: The bill would eliminate a significant barrier facing small businesses and startups, instead incentivizing venture capital funds to grow their investments in rural-state entrepreneurs, helping local economies grow and thrive.
• According to the Bill's sponsor: The bill would eliminate a significant barrier facing small businesses and startups, instead incentivizing venture capital funds to grow their investments in rural-state entrepreneurs, helping local economies grow and thrive.
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- Americans for Tax Reform Supports Rep. McHenry’s "Supporting America’s Innovators Act” of 2017
- North American Securities Administrators Administration (NASAA) Expresses Concerns
