Advancing America’s Innovation Economy Through Strong Capital Markets

Access to capital is the lifeblood of disruptive ideas and new company formation.

America’s innovation economy depends on capital markets that help entrepreneurs access funding at every stage of growth. From the first VC investment to a successful IPO or acquisition, startups rely on a healthy investment ecosystem that connects innovative companies with the capital they need to build, hire, and compete. 

Venture capital has powered many of America’s most transformative companies, but outdated securities regulations and increasingly difficult public market pathways have made it harder for startups to raise capital, provide liquidity for founders and employees, and grow into the next generation of public companies. 

To preserve U.S. leadership in innovation, policymakers should modernize capital markets, expand access to investment, and reduce unnecessary regulatory barriers that limit entrepreneurship and economic growth.

Policy Priorities

Expand Access to Capital for Emerging Venture Funds (ICAN Act) 

Many of today’s securities laws were written decades ago and no longer reflect how venture capital operates. The Improving Capital Allocation for Newcomers (ICAN) Act would modernize outdated Investment Company Act thresholds by allowing smaller venture funds to accept more investors and manage larger funds before triggering additional regulation. 

These updates would strengthen emerging managers, increase startup investment beyond traditional venture hubs, and expand access to capital for founders across America.  

Modernize Venture Fund Regulations (DEAL Act) 

The Developing and Empowering our Aspiring Leaders (DEAL) Act updates SEC rules governing venture capital funds by allowing greater flexibility for secondary transactions and fund-of-funds investments without unnecessary registration requirements. 

Modernizing these rules would unlock additional institutional investment, improve liquidity for founders and early employees, help investors recycle capital into new startups, and strengthen regional innovation ecosystems.  

Connect More Founders with Investors (HALOS Act) 

Entrepreneurs should be able to showcase their companies at demo days, pitch competitions, and community startup events without uncertainty surrounding federal securities laws. 

The bipartisan Helping Angels Lead Our Startups (HALOS) Act creates a permanent statutory safe harbor for these events, making it easier for founders to meet investors while maintaining important investor protections. Expanding access to these networking opportunities helps entrepreneurs raise capital regardless of geography and supports the growth of new startup ecosystems nationwide.  

Strengthen America’s IPO Pipeline 

A strong public market is essential to the startup lifecycle. Going public allows innovative companies to access growth capital, create liquidity for employees and early investors, and recycle investment into the next generation of startups. 

NVCA supports policies that reduce the cost and complexity of going public, modernize public company regulations, and strengthen U.S. capital markets so more innovative companies choose to list and grow in the United States.