Section 1 Short title
This Act may be cited as the “Developing and Empowering our Aspiring Leaders Act of 2023”.
Developing and Empowering our Aspiring Leaders Act of 2023
A BILL
To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in another venture capital fund, and for other purposes.
Sec. 2 Definitions
Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall—
revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations—
to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and
to specify that an investment in another venture capital fund is a qualifying investment under such definition; and
revise paragraph (a) of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments of the private fund are either—
predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or
predominantly qualifying investments in another venture capital fund or other venture capital funds.