Aug 23, 03:47 PM

SEC Updates Rules, Raises Venture Capital Fund Exemption Threshold to $12 Million

The U.S. Securities and Exchange Commission (SEC) has approved new rules to update the definition of qualifying venture capital funds. The rules raise the size threshold for venture capital fund exemption from $10 million to $12 million, allowing smaller funds more flexibility. Additionally, the average limited partner commitment has increased from $40,000 to $48,000. These changes are part of a congressional mandate aimed at easing regulatory costs for small venture capital funds, while maintaining a limit of 250 limited partners per fund.

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Written with ChatGPT (GPT-4o).

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Chris Harvey@ChrisHarveyEsq
1 year ago
⬛ The SEC just gave smaller VC funds a little more room to grow: Fund size cap from $10M to $12M ⬆️ • VC funds still limited to 250 LPs • Avg LP commitment from $40K to $48K per LP ⬆️ What emerging fund managers really need: • More seats (500+), not just bigger commitments https://t.co/IQeQpe8cA0
Trace Cohen@Trace_Cohen
1 year ago
Good reminder! https://t.co/cma8AXd5ec
Trace Cohen@Trace_Cohen
1 year ago
Always remember to make the VC startup math work! https://t.co/XPRTzY5SJe

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SEC Updates Rules, Raises Venture Capital Fund Exemption Threshold to $12 Million

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