Improving Capital Allocation for Newcomers Act of 2025
This bill expands qualification requirements for venture capital funds to include investment firms with more owners and capital contributions. 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 2,000 persons and $150 million, respectively.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4431 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4431
To amend the Investment Company Act of 1940 with respect to the
definition of qualifying venture capital funds, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 16, 2025
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Capital Allocation for
Newcomers Act of 2025''.
SEC. 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''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held
Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 2.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-248.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-248.
Placed on the Union Calendar, Calendar No. 205.
Mr. Davidson moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4950-4952)
DEBATE - The House proceeded with forty minutes of debate on H.R. 4431.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4950-4951)
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On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4950-4951)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.