Sec. 106. Regulatory definition of venture capital fund
151 words·~1 min read·
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Not later than 180 days after the date of enactment of this Act, the Commission shall— amend the definition of a qualifying investment under paragraph
(c)of section 275.203(l)–1 of title 17, Code of Federal Regulations, or any successor regulation— 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 that definition; and amend paragraph
(a)of section 275.203(l)–1 of title 17, Code of Federal Regulations, or any successor regulation, to require, as a condition of a private fund qualifying as a venture capital fund under that paragraph, that the qualifying investments of the private fund are— 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.