The House passed bipartisan legislation Thursday that increases the investor limitation from 100 to 250 individuals for qualifying venture capital funds, provided that the fund does not have more than $10 million in total investor capital.
The bill, H.R. 1219, the Supporting America's Innovators Act, sponsored by Patrick McHenry, R-N.C., vice chairman of the House Financial Services Committee, passed by a vote of 417 to 3.
McHenry said in a statement after the House vote that the legislation, which amends an exemption under the Investment Company Act of 1940, is "a common-sense bill that will remove needless and outdated regulations replacing them with a regulatory framework that will encourage the growth of innovative forms of capital formation, which help businesses grow and create jobs."
The bill, he added, "would eliminate a significant barrier facing small businesses and startups, instead incentivizing venture capital funds to grow."
H.R. 1219 now moves to the Senate where it awaits further consideration. A Senate version of H.R. 1219, S. 444 authored by Sens. Heidi Heitkamp, D-N.D., and Dean Heller, R-Nev., unanimously passed the Senate Banking Committee in early March.
