NVCA Recommends Changes to Volcker Rule to Support VC Investment into Emerging Ecosystems

WASHINGTON, DC – In its submission to the Office of the Comptroller of the Currency (OCC), the National Venture Capital Association (NVCA) today recommended key changes to the Volcker Rule that would support investment into high-growth companies in emerging ecosystems across the U.S.  NVCA outlined all the ways in which the scope for the covered funds provision of the Volcker Rule is too broad and the impact the prohibition has had on the economy, while demonstrating that it was never Congress’s intent to include venture capital funds in the prohibition and changes are required to correct this regulatory overreach. (more…)

PitchBook and NVCA Mark One-Year Anniversary of Partnership to Advance U.S. Venture Capital Community

WASHINGTON, DC – PitchBook, the leading data provider for venture capital (VC), and the National Venture Capital Association (NVCA), the leading  voice and advocate for the U.S. VC community, announced today the one-year anniversary of their data and publishing partnership. One year ago, the two organizations came together with the combined goal to increase clarity, insights and advocacy to advance the U.S. venture capital ecosystem. PitchBook serves as NVCA’s official data provider, enabling the association to present to U.S. policymakers data-driven research that demonstrates the positive and far-reaching impact of venture capital. Together, PitchBook and NVCA also jointly produce the PitchBook-NVCA Venture Monitor, the authoritative quarterly report on VC activity in the U.S. entrepreneurial ecosystem.  (more…)

NVCA, Entrepreneurs, and Startups File Lawsuit Challenging Delay of International Entrepreneur Rule

WASHINGTON, DC –The National Venture Capital Association (NVCA) today joined entrepreneurs and startup companies in filing a lawsuit in federal court in Washington, D.C. challenging the Department of Homeland Security’s (DHS) delay of the International Entrepreneur Rule (IER).  Finalized by the Obama Administration, the rule would have allowed talented foreign-born entrepreneurs to travel to or stay in the United States to grow their companies for two and a half years with the possible extension of another two and a half years.  NVCA and the other plaintiffs are represented by the American Immigration Council and Mayer Brown LLP.

Less than a week before the IER was to go into effect on July 17, DHS announced that the rule would be delayed and that DHS will be proposing to rescind the final rule.  Because DHS did not solicit advance comment from the public on the delay, it violated clear requirements of the Administrative Procedure Act.  As a result of the suspension of the IER, immigrant entrepreneurs that intended to use the rule have been and will be harmed.  The U.S. economy will miss new businesses and jobs that would have been created but that unfortunately will now be created overseas.  To remedy this unlawful action, the plaintiffs are asking the court to compel DHS to implement the IER, and begin processing applications of foreign-born entrepreneurs so that they can come to the U.S. on a temporary basis to grow their businesses. (more…)

NVCA and Stakeholders Urge Trump Administration to Keep International Entrepreneur Rule in Place

WASHINGTON, DC – The National Venture Capital Association (NVCA) and 59 other organizations, individuals and interested stakeholders today expressed their shared disappointment that the Department of Homeland Security (DHS) delayed the effective date of the International Entrepreneur Rule and plans to rescind it entirely.  In the comment letter organized by NVCA, the signatories encouraged DHS to use the delay to reexamine the decision to rescind the rule and prepare for accepting applications from talented foreign-born entrepreneurs beginning in March 2018 after the delay is over.  Joining NVCA were leading national trade associations and advocacy groups, including FWD.us, Engine, ITI, and TechNet, as well as regional groups from the Midwest, New England, Mid Atlantic, Northeast and Southwest.

“President Trump has made winning the global competition for jobs a priority of his administration and we appreciate his stated focus on making our country the best place in the world to create a new enterprise,” the group of signatories wrote in the letter to DHS Acting Secretary Elaine Duke.  (more…)

NVCA Submits Tax Reform Proposals to Encourage New Company Formation

WASHINGTON, DC – The National Venture Capital Association (NVCA) today unveiled its submission to the Senate Finance Committee with tax reform proposals to encourage new company formation.  These proposals were provided to the committee in response to a request from Senator Orrin Hatch (R-UT), Chairman of the Finance Committee, who called on stakeholders to provide ideas, proposals and feedback to the committee on how to improve the American tax system.

“Tax reform represents a huge opportunity to spur greater economic activity for the country and critical to that will be using this opportunity to reprioritize pro-entrepreneurship tax policy,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Startups Need Robust Net Neutrality Rules to Compete on Level Playing Field

WASHINGTON, DC – The National Venture Capital Association (NVCA) today submitted comments to the Federal Communications Commission (FCC) in response to the notice of proposed rulemaking “Restoring Internet Freedom.”  In its submission, NVCA advocated for robust net neutrality rules to allow startups to compete on a level playing field and to provide venture investors the confidence they need to make bold investments in technology and Internet startups.

“Venture investors assume incredible risk as they invest in an early-stage company and work with an entrepreneur to build a company into a prospering enterprise,” wrote Bobby Franklin, President and CEO of NVCA.  (more…)

Venture Activity Holds Steady with Over $21.78 Billion Invested in Close to 2,000 Companies in Second Quarter

Fundraising Environment Remains Favorable with $130 Billion Raised since 2014 for Deployment to Entrepreneurial Ecosystem

SEATTLE, WA – Investors deployed $21.78 billion to 1,958 venture-backed companies during the second quarter, marking a significant uptick from the first quarter in capital invested while the number of companies receiving investment was stable, according to the PitchBook-NVCA Venture Monitor.  Through the first six months of the year, 3,876 companies received $37.76 billion in financing, setting a pace to near or surpass the $71 billion invested last year, and confirming that the industry has leveled off after peaking in 2015.  Looking to the second half of the year, venture investors will continue to deploy capital to high-growth startups, having raised more than $130 billion since 2014, including $11.4 billion raised in the second quarter of 2017 across 58 funds.

“Venture investment activity the last few quarters supports evidence from the field that the industry is in the middle of a self-correction as valuations come down and the marketplace cools off,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Delay of International Entrepreneur Rule Missed Opportunity to Strengthen Economy and Create American Jobs

WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after the Trump Administration announced the delay of the effective date of the International Entrepreneur Rule and its intention to rescind the rule.  Set to go into effect on July 17, 2017, the rule would allow for talented immigrant entrepreneurs to remain in the U.S. for two and a half years to build and scale their startups, with a possible extension of another two and a half years.  NVCA worked collaboratively with the Obama Administration to craft the rule and has been engaging with the Trump Administration since January to advocate for its implementation.

“Today’s announcement is extremely disappointing and represents a fundamental misunderstanding of the critical role immigrant entrepreneurs play in growing the next generation of American companies,” said Bobby Franklin, President and CEO of NVCA.  (more…)

Scott Kupor Appointed Chair of NVCA Board of Directors

Nine New Directors Elected to Board for Four-Year Terms

WASHINGTON, DC – The National Venture Capital Association (NVCA) today announced that Scott Kupor, Managing Partner at Andreessen Horowitz, will serve as the 2017-2018 Chair of the NVCA Board of Directors.  His appointment was made official at the NVCA Annual Meeting in Washington, DC.

Kupor becomes Chair of the NVCA Board of Directors at an important time for the organization and its advocacy work representing the interests of its members and the entrepreneurs they support.  As Chair, Kupor will assist NVCA in delivering value to its members as well as promoting the U.S. as the most attractive place to start and grow companies.

“I look forward to rolling up my sleeves and assisting Bobby and the team in representing our industry in Washington,” remarked Kupor at the start of his term.  (more…)

NVCA Convenes VCs and Policymakers in DC for Annual Meeting

WASHINGTON, DC – The National Venture Capital Association (NVCA) will convene tomorrow venture investors, policymakers and other stakeholders from the entrepreneurial ecosystem for two days of policy discussion and meetings to support new company creation at the NVCA Annual Meeting in Washington, DC.

“We are totally rewriting the script this year for the NVCA Annual Meeting to focus exclusively on policy and direct engagement with policymakers,” said Bobby Franklin, President and CEO of NVCA.  “We are bringing VCs to DC to so that the venture community can better understand how policymakers approach our policy issues and in turn how policymakers can better understand how the policies they are working on are impacting new company formation. (more…)