To start off the New Year, we wanted to begin providing quarterly updates to the entrepreneurial ecosystem on what we’re focusing on at NVCA. So here are nine things that NVCA is focusing on at the start of 2019:
1) Data & the Pitchbook-NVCA Venture Monitor
We recently released the 4Q 2018 PitchBook-NVCA Venture Monitor, which showed that 2018 was an amazing year for the VC and startup industry, with almost 9,000 investments into portfolio companies totaling $130.9 billion. This is great news for American entrepreneurs all across the country.
2) Foreign Investment
The FIRRMA legislation that was signed into law in 2018 is now being implemented, which is creating new challenges for VCs with foreign LPs and co-investors, and for portfolio companies looking for financing from foreign investors. NVCA was very involved in the legislative process around FIRRMA, and now we’re advocating heavily on behalf of the industry during the ongoing regulatory process, which implements the law. We’re also trying to make it easier for VCs and portfolio companies navigate these new challenges by updating our model legal documents with foreign investment related language, which you can find here.
3) ERA/RIA Definition
We want to update the ERA/RIA definition so that a VC looking to make investments into secondaries, cryptocurrencies, or investing into another fund doesn’t have to change their SEC registration from an ERA to an RIA. This will allow VCs to invest more into portfolio companies.
4) Tax Policy
The 2018 Midterm Elections brought changes in Washington, and in state capitals, that will change the way tax policy is debated across the country. It is our job to educate policymakers that tax policy should encourage entrepreneurship and new company formation.
5) Volcker Rule
Before the Volcker Rule passed, regional banks used to help capital formation for VC investors in the Midwest and other parts of the middle of the country, supporting investment into startups in those regions. The Volcker Rule has made it much more difficult to support entrepreneurs in the middle of the country. So we’re working hard with policymakers and regulators to ensure that banks can once again be an important source of capital for entrepreneurs all across the country.
6) NVCA Working Groups
It’s very important for us at NVCA to understand what’s important to the VC community. Therefore, we have a number of dynamic working groups on a variety of issues. This year, we have two new working groups. One is a regional working group to help address issues for VC funds in emerging ecosystem outside of the traditional epicenters of venture capital. The second is a blockchain working group so that we can understand from those making investments into cryptocurrencies and blockchain technologies what’s important for NVCA to focus on, and what we should advise policymakers on what they should do, and, often more importantly, what they shouldn’t do.
This year, we are continuing our LP Office Hours program, which brings together experienced LPs and GPs to give expert advice to new diverse investors who are trying to get into the VC industry. We will also soon release the second NVCA-Deloitte Human Capital Survey, which will help measure the state of the VC industry and how it has changed since the last Human Capital Survey from 2016.
We’re putting on the second annual Stanford/NVCA Venture Capital Symposium this march in Palo Alto, where leaders in the industry get the latest on what they need to know, so that they can bring that knowledge back to their firms and portfolio companies. We also recently announced our new partnership with the University of California, Berkeley, called the Venture Capital University, which is designed for new entrants to the VC industry. These are both part of our efforts to help support VCs across the country with education and resources.
9) New Website
This year, we’re going to update our website to ensure that it is more member-friendly and that members of the entrepreneurial ecosystem can find the information they need to know. The new website will also be an easy place for policymakers and their staff to find out more about how VCs are working with portfolio companies to build the new great American companies.
This is just a sample of the initiatives we are working on for our members. For more information on membership contact Stephanie Volk at firstname.lastname@example.org be sure check out the many NVCA events that we’ll host throughout this year.