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H.R. 2790House118th Congress (2023-2025)In Committee

Improving Capital Allocation for Newcomers Act of 2021

Sponsored by William R. Timmons IVRep. William R. Timmons IV (R-SC)
Introduced April 20, 2023

AI-Generated Summary

Updated January 20, 2026 at 6:32 AM UTC

The Improving Capital Allocation for Newcomers Act of 2021 changes the definition of a qualifying venture capital fund under the Investment Company Act of 1940. It raises the limits on how many investors a fund can have and the amount of capital it must hold, affecting venture capital funds and the regulatory requirements they must meet.

Key Provisions

  • Increases the maximum number of persons allowed in a qualifying venture capital fund from 250 to 2,000.
  • Raises the minimum capital threshold for a qualifying venture capital fund from $10 million to $150 million.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

April 20, 2023

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HouseIntro Referral

Introduced in House

April 20, 2023

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

April 20, 2023

Bill Text

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Introduced in HouseIssued April 20, 2023

I

118th CONGRESS

1st Session

H. R. 2790

IN THE HOUSE OF REPRESENTATIVES

April 20, 2023

Mr. Timmons introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Investment Company Act of 1940 with respect to the definition of qualifying venture capital funds, and for other purposes.

1.

Short title

This Act may be cited as the Improving Capital Allocation for Newcomers Act of 2021.

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 2,000 persons; and

(2)

in subparagraph (C)(i), by striking $10,000,000 and inserting $150,000,000.