The Securities and Exchange Commission has proposed a new rule that would update the definition of a qualifying venture capital fund.
SEC said Wednesday it proposes to raise the dollar threshold for a fund to qualify as a qualifying venture capital fund from $10 million to $12 million aggregate capital contributions and uncalled committed capital based on the Personal Consumption Expenditures Chain-Type Price Index.
The proposed rule would also establish a process for future inflation adjustments every five years in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018.
According to the Commission, qualifying venture capital funds are excluded from the Investment Company Act’s definition of an “investment company.”