Developing and Empowering our Aspiring Leaders Act of 2025
Last recorded step: House, Dec 2, 2025.
Nothing scheduled on the calendars we hold.
This bill would expand the types of investments, such as secondary transactions, that allow a fund to qualify as a venture capital fund.
What it does
This bill would direct the Securities and Exchange Commission to expand the types of investments that allow a firm to qualify as a venture capital fund. Specifically, it proposes to include secondary transactions and investments in other venture capital funds as qualifying investments, which are currently limited to 20% of a fund's portfolio. To maintain this status, a private fund's investments would need to consist predominately of direct acquisitions or investments in other venture capital funds.
Who is affected
This bill primarily affects venture capital funds and their managers by expanding the types of investments that qualify for certain regulatory exemptions. The Securities and Exchange Commission is also affected, as the bill directs the agency to revise existing regulations regarding qualifying investments for these funds. Additionally, the bill impacts private funds that seek to qualify as venture capital funds through secondary transactions or investments in other venture capital funds.
Key provisions
- Revision of venture capital investment regulations. The bill directs the Securities and Exchange Commission to expand the types of investments that are categorized as qualifying investments for venture capital funds.
- Inclusion of secondary transactions and fund-of-funds investments. Investments acquired through secondary transactions or investments in other venture capital funds would be considered qualifying investments rather than being subject to the current 20% cap on non-qualifying investments.
- Establishment of predominance requirements for private funds. To qualify as a venture capital fund under the new regulations, a private fund's investments must predominately consist of assets acquired directly or investments in other venture capital funds.
Fiscal impact
- H.R. 4429, Developing and Empowering our Aspiring Leaders Act of 2025· As passed by the House of Representatives on December 1, 2025
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
The bill directs the Securities and Exchange Commission to revise existing venture capital investment regulations regarding what constitutes a qualifying investment. It modifies current regulatory thresholds that limit non-qualifying investments, such as secondary transactions and investments in other venture capital funds, to 20% of a fund's portfolio.
Stated purpose
The bill aims to expand the types of investments that qualify for venture capital fund regulatory exemptions by allowing funds to include secondary transactions and investments in other venture capital funds as qualifying investments.