Developing and Empowering our Aspiring Leaders Act of 2025
Sponsored By: Representative Wagner, Ann [R-MO-2]
Passed House
Summary
Expands what counts as a qualifying investment for venture capital fund advisers and sets a concentration cap for certain fund holdings. This bill would direct the Securities and Exchange Commission to revise its venture capital fund rules within 180 days to include equity securities acquired directly from a qualifying portfolio company or in a secondary acquisition and to treat investments in other venture capital funds as qualifying investments. It would also require that, immediately after any asset acquisition, a private fund hold no more than 49 percent of its capital contributions and uncalled committed capital in (A) one or more venture capital funds or (B) qualifying investments acquired in a secondary acquisition.
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- Venture capital fund advisers: Advisers would be able to count equity bought directly from portfolio companies and secondary-market purchases, plus investments in other venture capital funds, when qualifying for the venture capital adviser exemption.
- Private funds and fund structures: Funds must limit concentration so that no more than 49 percent of their capital and uncalled commitments are invested in other venture funds or in secondary-acquired qualifying investments immediately after an acquisition, which could change fund allocation and deal planning.
- Portfolio companies and secondary markets: Secondary sellers and portfolio companies could see more demand because those secondary shares would now qualify under the venture capital definition.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New rules for venture capital funds
If enacted, the SEC would update venture capital fund rules within 180 days. The bill would broaden what counts as a qualifying investment: equity in a qualifying portfolio company (direct or secondary) and investments in other venture capital funds. It would also add a cap: right after any asset purchase, a fund could hold no more than 49% of its aggregate capital contributions plus uncalled committed capital (excluding short‑term holdings) in those items. Funds would value these holdings at cost or fair value, applied consistently.
Sponsors & CoSponsors
Sponsor
Wagner, Ann [R-MO-2]
MO • R
Cosponsors
Casten
IL • D
Sponsored 7/21/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov