What Size Venture Fund Will Be Required To Register With The SEC?
The Obama Administration is proposing that venture funds above a certain size be required to register with the SEC.
"All advisers to hedge funds (and other private pools of capital, including private equity funds and venture capital funds) whose assets under management exceed a certain threshold should be required to register with the SEC."
Currently, venture funds are generally not required to register with the SEC. This proposed requirement that venture funds above a certain size will be required to register with the SEC may at the margins cause certain funds not to be formed, and slow down capital formation, capital flows to startup companies, and ultimately innovation. Let us hope that the size requirement will be large enough not to have these effects. We will keep you posted when we learn more.
