Improving Capital Allocation for Newcomers Act of 2021
This bill revises qualification requirements for venture capital funds. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Currently, an investment firm qualifies as a venture capital fund if, among other requirements (1) the fund's securities are owned by 250 persons or less, and (2) the fund has $10 million or less in aggregate capital contributions and uncalled committed capital. The bill increases these amounts to 600 persons and $150 million, respectively.
To amend the Investment Company Act of 1940 with respect to the 
definition of qualifying venture capital funds, 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 ``Improving Capital Allocation for 
Newcomers Act of 2021''.

SEC. 2. QUALIFYING VENTURE CAPITAL FUNDS.

    Section 3(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 
80a-3(c)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``250 persons'' and inserting ``600 persons''; and
            (2) in subparagraph (C)(i), by striking ``$10,000,000'' and 
        inserting ``$150,000,000''.
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Improving Capital Allocation for Newcomers Act of 2021
To amend the Investment Company Act of 1940 with respect to the definition of qualifying venture capital funds, and for other purposes.
Improving Capital Allocation for Newcomers Act of 2021
Rep. Timmons, William R. IV