Venture Capital Fund Expansion Bill

Improving Capital Allocation for Newcomers Act of 2025This bill expands qualification requirements for venture capital funds to include investment firms with more owners and capital contributions. 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 2,000 persons and $150 million, respectively.

1. This bill increases the number of investors allowed in venture capital funds from 250 to 500. 2. It raises the limit on the amount of money a fund can manage from $10 million to $50 million. 3. The bill requires a study on how these changes affect startups and businesses after five years. 4. It allows for adjustments to the investor and fund limits based on the study's findings. 5. The public can provide feedback on the study's results before any new rules are made.

Startup founders and small business owners seeking investment.