pic-asher.jpgCONTRIBUTED BY
Asher Bearman

 The National Venture Capital Association (NVCA) just released its comment memorandum to the SEC regarding the definition of venture capital fund for purposes of the new exemption from Adviser’s Act registration under the Dodd-Frank Act.  I’ve previously written about the proposed rules on the blog here.

See this link to the NVCA blog post, including links to their comment letter.  Notably, the comment letter includes requests for the following:

  • Allowance for up to 15 percent of the fund’s capital to engage in activity that may not meet all the components of the venture fund definition
  • Clarification on the borrowing activity restriction proposed for portfolio companies
  • Adjustments to rules around secondary transactions or the purchase of stock by venture funds from founders or employees
  • Allowance for follow-on investments in public company in specific instances