Modernizing the SEC’s Definition of Venture Capital Fund

Policy Reasons for Exempt Reporting Advisor Status Founder + VC Growth Exemption demonstrates that VC funds were never intended target of this regulation: Long-term equity investment VC model low priority for regulation: VC funds rarely take control positions in companies, portfolio company fees don't support returns, leverage not prominent in financings. nvca Because of the economic impact of VC activity on innovation and new company growth, Congress decided that the policy priority for VC regulation should be on making capital available for startup activity rather than compliance.

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