Venture Capital Investment Act of 1979

Venture Capital Investment Act of 1979 - Title I: Amendments to the Securities Act of 1933 - Amends the Securities Act of 1933 to include within the private offering exemption from full registration any transaction involving securities bearing a legend stating that such securities may not be sold or transferred except to accredited investors provided all purchasers of such securities are accredited investors or persons the issuer reasonably believes to be accredited investors. Exempts from registration (under the exemption for transactions not involving an issuer, underwriter, or dealer) any resale of a security bearing such a legend if the purchaser is an accredited investor or a person reasonably believed to be an accredited investor. Defines the term "accredited investor" to include: (1) banks, insurance companies, investment companies and their subsidiaries, and any fund, trust or account administered by a bank or insurance company; and (2) persons designated by regulation of the Securities and Exchange Commission on the basis of expertise or net worth.

Provides that a venture capital company engaging in the distribution of restricted securities (securities acquired in a transaction or chain of transactions not involving a public offering) shall not be considered an underwriter if such a company has been the beneficial owner of the restricted securities for a period of at least five years. Defines "venture capital company" for purposes of the Securities Act of 1933 and the Investment Company Act of 1940 to include only those companies which: (1) primarily engage in activities such as providing capital to industry, financing promotional enterprises, purchasing securities for which no ready market exists, or reorganizing companies; and (2) have at least 80 percent of their assets (excluding Government securities, short-term paper, and cash) in securities obtained in connection with a private offering, resale of restricted securities, or corporate reorganization.

Title II: Amendments to the Investment Company Act of 1940 - Amends the Investment Company Act of 1940 to exempt from regulation under such Act as an investment company: (1) any venture capital company which is a reporting company under the Securities Exchange Act of 1934; (2) any venture capital company for a period of 180 days after its securities become beneficially owned by more than 100 persons; and (3) any venture capital company which presently proposes to make a public offering of its securities for 180 days after filing its registration statement and 60 days following its effective date or withdrawal, whichever last occurs.

Prohibits a venture capital company from: (1) engaging in any business in interstate commerce in which a majority of its directors would be deemed interested if it were an investment company; and (2) selling or disposing of any securities it owns in any manner or amounts except those permitted under the Securities Act of 1933 for securities acquired in a private offering. Restricts the directors, officers, employees, and controlling shareholders of a venture capital company in owning and purchasing securities of the companies in which the venture capital company invests.

Permits a venture capital company to register as an investment company though it would be entitled to an exemption under this Act provided it is not a personal holding company as defined in the Internal Revenue Code of 1954.

Directs the Securities and Exchange Commission to promulgate regulations to implement this Act within 180 days of its enactment.