The National Venture Capital Association (NVCA) is lauding House advancement of the JOBS and Investor Confidence Act of 2018 by a vote of 406-4.
“The JOBS and Investor Confidence Act of 2018 is a broad-based approach to analyzing and improving the investment environment for startups,” Bobby Franklin, NVCA president and CEO, said. “This bill will focus policy conversations in Washington on complex but critical issues for growth companies considering going public, reduce the cost of being a smaller public company and improve the regulatory environment for startup investment. We applaud the leadership of the House Financial Services Committee for working to build this important package.”
NVCA officials said they were particularly pleased to see the inclusion of the Developing and Empowering our Aspiring Leaders (DEAL) Act, sponsored by Rep. Trey Hollingsworth (R-IN).
The legislation would encourage capital formation for startups by directing the Securities and Exchange Commission (SEC) to make a percentage of secondary investments qualifying for purposes of the definition of a venture capital fund, according to officials.
NVCA officials said modernizing the SEC’s definition of a VC fund to more accurately reflect the industry has become one of the most significant regulatory priorities facing the startup ecosystem.
Franklin said Hollingsworth’s leadership in advancing the DEAL Act is critical to the venture capital community.