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New Beneficial Owner Threshold Eases VC Fundraising

A recent change to Section 3(c)(1) of the Investment Company Act may make it easier for small venture capital funds and certain special purpose vehicles to raise capital. While Section 3(c)(1) previously enabled such funds with up to 100 beneficial owners to be exempt from registering as investment companies with the Securities and Exchange Commission, the revised law increases this threshold to 250 beneficial owners.

Teammates from Mintz Levin’s Corporate & Securities Practice recently explained the change to Section 3(c)(1) and the potential benefits for qualifying venture capital funds in an alert. To read the full article, click here.

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Thomas R. Burton, III

Member / Chair, Energy & Sustainability Practice

Thomas R. Burton III has helped to shape the clean energy industry by drawing on his passion for innovation. As a Mintz attorney, Tom counsels investors, entrepreneurs, and Fortune 100 companies. He also guides start-up organizations and accelerators to foster the next generation of energy leaders.