The bill increases the limit from 100 to 250, a change that would permit angel and venture funds to better help accredited investors invest in small business startups. The new upper limit would apply to “qualifying venture capital funds,” meaning those that don’t purchase more than $10 million in invested capital of any one issuer, adjusted for inflation. The bill is being sponsored in the Senate by Sen. Heidi Heitkamp (D.-N.D.).

It passed the Senate Committee on Banking, Housing, and Urban Affairs on March 13, 2017, and is waiting for full Senate action. Jack Howard, senior vice president of congressional and public affairs with the U.S. Chamber of Commerce, says, “This fix is particularly necessary as provisions under the JOBS Act have provided more opportunities for companies to raise capital through private channels, causing more funds to bump up against the current SEC registration tripwire.”

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