Dodd-Frank.com

Fix Crowdfunding Act and Venture Capital Bill Pass House

By | July 5, 2016

The Fix Crowdfunding Act (H.R. 4855) passed the House of Representatives by a vote of 394 to 4. It doesn’t look much like the original bill we reported on here. As passed by the House, the bill allows special purpose vehicles, called “crowdfunding vehicles” to engage in crowdfunding, and to make investments in a crowdfunding issuer, subject to significant limitations. It also makes the Exchange Act registration exemption for crowdfunded issuers unconditional if the issuer has a public float of less than $75 million.

The Supporting America’s Innovators Act of 2016 (H.R. 4854) creates an exemption from the Investment Company Act for funds with up to 250 investors, so long as they are a venture capital fund, as defined in Section 203(l) of the Investment Advisers Act, and have no more than $10 million in invested capital. The bill passed the house with a vote of 388 to 9.

ABOUT STINSON LEONARD STREET

Stinson Leonard Street LLP provides sophisticated transactional and litigation legal services to clients ranging from individuals and privately held enterprises to national and international public companies. As one of the 100 largest firms in the U.S., Stinson Leonard Street has offices in 14 cities, including Minneapolis, Mankato and St. Cloud, Minn.; Kansas City, St. Louis and Jefferson City, Mo.; Phoenix, Ariz.; Denver, Colo.; Washington, D.C.; Decatur, Ill.; Wichita and Overland Park, Kan.; Omaha, Neb.; and Bismarck, N.D.

The views expressed herein are the views of the blogger and not those of Stinson Leonard Street or any client.

Contact Steve Quinlivan for more information.

Topics: 
Crowdfunding