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— (1) revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations— (A) to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and (B) to specify that an investment in another venture capital fund is a qualifying investment under such definition; and (2) revise paragraph (a) of such section to to— (A) require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments not less than 51 percent of the private fund are either— (A) predominantly qualifying investments that were fund’s aggregate capital contributions and uncalled committed capital (other than short term holdings) shall consist of equity securities acquired directly from a qualifying portfolio company; or company, including immediately after the acquisition of any asset; and (B) predominantly qualifying specify that up to 49 percent of the fund’s aggregate capital contributions and uncalled committed capital (other than short term holdings) may consist of investments in another one or more venture capital fund or other venture capital funds.funds, as well as securities acquired in a secondary acquisition.