The Securities and Exchange Commission has up to date the greenback threshold for a car to be thought-about a “qualifying enterprise fund” to $12 million, up from $10 million.
Qualified enterprise funds are a subset of enterprise funds that may increase from as much as 250 accredited buyers whereas additionally being exempt from having to register with the SEC as an funding firm and tackle the monetary burdens of such (they have to nonetheless adhere to the foremost laws of being a VC fund). The solely different method a personal fund can stay exempt from registering with the SEC as an funding firm is that if it has not more than 100 buyers.
Emerging funds — these probably to get smaller checks from buyers and subsequently want extra buyers — have been hardest hit by the VC bear market that started in 2022. While the brand new SEC rule is a routine inflation adjustment that the SEC revisits each 5 years, it comes at a time when smaller VCs may actually use such assist.
