NVCA is working to allow banks to invest in venture capital funds again. As part of this effort, we recently filed a comment letter proposing two solutions for how the various federal agencies can accomplish this priority while still adhering to the broader goals of the Volcker Rule. Through this post, our aim is to share some background on the current regulation and provide an overview of what our proposal seeks to accomplish and why.
Before the Volcker Rule became the law of the land, banks served as an important source of capital for venture capital funds, particularly for smaller funds in emerging startup ecosystems. Read more