Sec. 2602. Definitions
157 words·~1 min read·
/bill/118/hr/2799/eh/section-2602·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall, in a manner that facilitates capital formation without compromising investor protection— revise the definition of a qualifying investment under paragraph
(c)of section 275.203(l)–1 of title 17, Code of Federal Regulations— to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and to specify that an investment in another venture capital fund is a qualifying investment under such definition; and revise paragraph
(a)of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments of the private fund are either— predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or predominantly qualifying investments in another venture capital fund or other venture capital funds.