BGOV Bill Analysis: H.R. 4429, Venture Capital Investing Rules

The Securities and Exchange Commission would have to expand the definition of a qualifying investment to include equity securities acquired through secondary transactions or investments in another venture capital fund under a modified version of H.R. 4429.

Venture capital funds can be exempt from SEC registration requirements if no more than 20% of their capital is in nonqualifying investments.

Within 180 days of the bill’s enactment, the SEC would have to adjust its definition of a qualifying investment, which typically includes direct investments into private companies. The new definition would have to include securities issued by a qualifying portfolio ...