Developing and Empowering our Aspiring Leaders Act of 2022
This bill directs the Securities and Exchange Commission to revise venture capital investment regulations. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of a venture capital fund.
The bill allows investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately (1) be acquired directly, or (2) be investments in other venture capital funds.

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 
         another venture capital fund, 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 ``Developing and Empowering our 
Aspiring Leaders Act of 2022''.

SEC. 2. DEFINITIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Securities and Exchange Commission shall--
            (1) revise the definition of a qualifying investment under 
        paragraph (c) of section 275.203(l)-1 of title 17, Code of 
        Federal Regulations--
                    (A) to include an equity security issued by a 
                qualifying portfolio company, whether acquired directly 
                from the company or in a secondary acquisition; and
                    (B) to specify that an investment in another 
                venture capital fund is a qualifying investment under 
                that definition; and
            (2) revise paragraph (a) of section 275.203(l)-1 of title 
        17, Code of Federal Regulations, 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--
                    (A) predominantly qualifying investments that were 
                acquired directly from a qualifying portfolio company; 
                or
                    (B) predominantly qualifying investments in another 
                venture capital fund or other venture capital funds.
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Developing and Empowering our Aspiring Leaders Act of 2022
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 another venture capital fund, and for other purposes.
Developing and Empowering our Aspiring Leaders Act of 2022
Sen. Rounds, Mike