Recommend Improvements to FIRRMA to Avoid Unintended Consequences on Startup Investment
WASHINGTON, DC – At a congressional hearing today, NVCA Board Chair Scott Kupor, Managing Partner of Andreessen Horowitz, testified on the need to protect U.S. innovation, security and competitiveness, but cautioned lawmakers not to overlook the unintended consequences of proposed legislation to reform the Committee on Foreign Investment in the United States (CFIUS). Testifying before the U.S. Senate Committee on Banking, Housing and Urban Affairs at a hearing entitled “CFIUS Reform: Examining the Essential Elements,” Kupor shared with lawmakers the fundamentals of venture capital investing as well its importance to the U.S. economy before outlining concerns with S. 2098 the Foreign Investment Risk Review Modernizations Act of 2017 (FIRRMA) and the unintended consequences it would have on venture capital and investment into innovative startups.
“FIRRMA is well meaning legislation intended to deal with a real challenge. However, as drafted FIRRMA produces many questions about the filing obligations of U.S. venture capitalists when a fund has any amount of foreign LPs,” remarked Kupor in his prepared testimony. Read more