United States S 3914: Developing and Empowering our Aspiring Leaders Act of 2022

Bill Text

II
117TH CONGRESS
2D SESSION S. 3914
To require the Securities and Exchange Commission to revise the definition
of a qualifying investment, for purposes of the exemption from registra-
tion for venture capital fund advisers under the Investment Advisers
Act of 1940, to include an equity security issued by a qualifying portfolio
company and to include an investment in another venture capital fund,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 24, 2022
Mr. ROUNDS introduced the following bill; which was read twice and referred
to the Committee on Banking, Housing, and Urban Affairs
A BILL
To require the Securities and Exchange Commission to revise
the definition of a qualifying investment, for purposes
of the exemption from registration for venture capital
fund advisers under the Investment Advisers Act of
1940, to include an equity security issued by a qualifying
portfolio company and to include an investment in an-
other venture capital fund, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
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•S 3914 IS
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Developing and Em-2
powering our Aspiring Leaders Act of 2022’’. 3
SEC. 2. DEFINITIONS. 4
Not later than 180 days after the date of enactment 5
of this Act, the Securities and Exchange Commission 6
shall— 7
(1) revise the definition of a qualifying invest-8
ment under paragraph (c) of section 275.203(l)–1 of 9
title 17, Code of Federal Regulations— 10
(A) to include an equity security issued by 11
a qualifying portfolio company, whether ac-12
quired directly from the company or in a sec-13
ondary acquisition; and 14
(B) to specify that an investment in an-15
other venture capital fund is a qualifying in-16
vestment under that definition; and 17
(2) revise paragraph (a) of section 275.203(l)– 18
1 of title 17, Code of Federal Regulations, to re-19
quire, as a condition of a private fund qualifying as 20
a venture capital fund under that paragraph, that 21
the qualifying investments of the private fund are— 22
(A) predominantly qualifying investments 23
that were acquired directly from a qualifying 24
portfolio company; or 25
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•S 3914 IS
(B) predominantly qualifying investments 1
in another venture capital fund or other venture 2
capital funds. 3
Æ
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