Home / Business and Economy / House Passes Bill to Boost Investor Access to Private Markets
House Passes Bill to Boost Investor Access to Private Markets
12 Dec
Summary
- Legislation aims to increase capital formation for startups.
- Accredited investor status could include passing an SEC-approved exam.
- Venture capital fund limits for raising and investors will increase.
Legislation aimed at enhancing capital formation and increasing access to private markets has cleared the House of Representatives. The package, known as the INVEST Act, received bipartisan support, passing with a vote of 302 to 123.
The bill introduces significant changes, notably by allowing individuals to become accredited investors through an exam approved by the Securities and Exchange Commission, moving beyond traditional wealth or income requirements. This move is intended to democratize investment opportunities.
Furthermore, the legislation will lift caps on the amount venture capital firms can raise and the number of investors they can attract, potentially stimulating investment in startups across the country, including in less-served regions.
