WASHINGTON, DC – The National Venture Capital Association (NVCA) applauds today’s passage of the JOBS and Investor Confidence Act of 2018 in the U.S. House of Representatives by an overwhelming bipartisan vote of 406-4. The bill includes a number of provisions that will support capital formation for U.S. growth companies. These pro-innovation provisions include relief for many venture capital firms from having to become Registered Investment Advisors (RIAs), a designation that was not intended for VC firms and which adds a number of costs and challenges for VC firms. Even firms that do not have to register often need to manage their portfolio and limit or refrain from certain investments to avoid the regulatory morass of registration. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) filed comments today to the Department of Homeland Security (DHS) arguing against the department’s proposed rescission of the International Entrepreneur Rule (IER), which would allow for talented immigrant entrepreneurs to remain in the United States to build and scale their startups. NVCA argues in its comments that rescinding the IER program would prevent the U.S. from realizing the substantial economic and security benefits that locating new startup companies in the U.S. would provide.
“NVCA is proud to once again lead the charge to support immigrant entrepreneurs,” said Bobby Franklin, President and CEO of NVCA. “Our comments in support of the International Entrepreneur Rule reflect the incredible contributions of foreign-born entrepreneurs and how they are working in partnership with venture capitalists to solve the world’s most challenging problems, whether in technology, healthcare, science, or many other areas. In addition, our comments demonstrate that the administration relies on unsupported assertions and arguments in justifying removal of the International Entrepreneur Rule.” Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) was pleased to see that today’s proposal from the Federal Reserve to simplify the Volcker Rule includes questions on whether the rule’s exclusion of banks from investing into U.S. venture capital funds should be revised. Currently, the Volcker Rule prohibits U.S. financial institutions from investing into venture capital funds as limited partners. This has had a disproportionate impact on cities and regions with emerging entrepreneurial ecosystems—areas outside of Silicon Valley and other traditional technology centers. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after the Department of Homeland Security (DHS) proposed to rescind the International Entrepreneur Rule, which would allow for talented immigrant entrepreneurs to remain in the U.S. to build and scale their startups.
“The startup and venture community is very disappointed with DHS’s short-sighted decision to turn away American jobs that would be created by the International Entrepreneur Rule,” said Bobby Franklin, President and CEO of NVCA. “The facts are clear: our country needs more entrepreneurship, which is exactly what the International Entrepreneur Rule would bring. We will continue to explain to the administration why immigrant entrepreneurship benefits our country and must be supported by policymakers.” Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) today joined with the U.S. Chamber of Commerce and other organizations to release “Expanding The On-Ramp: Recommendations to Help More Companies Go and Stay Public,” a report providing public policy recommendations to encourage more U.S. public companies. The report was produced in partnership with a number of organizations, including The Center for Capital Markets Competitiveness, Nasdaq, TechNet, SIFMA, Biotechnology Innovation Organization, American Securities Association and Equity Dealers of America.
The recommendations in the report provide a blueprint for policymakers to address the challenges to both launching IPOs and remaining a public company. The policy recommendations include enhancements to the reforms put in place by the JOBS Act, proposals to encourage more research of emerging growth companies (EGCs), improvements to corporate governance, disclosure, financial reporting and regulatory requirements, and enhancements to equity market structure. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) today recommended key changes to the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2017 on behalf of the entrepreneurial ecosystem. NVCA submitted its views on the legislation in a submission to the House Financial Services Committee in connection with its hearing on “H.R. 4311, the Foreign Investment Risk Review Modernization Act of 2017.”
FIRRMA expands the mandate of the Committee on Foreign Investment in the United States (CFIUS) to review minority investments into U.S. critical technology companies, unless the investment is a passive investment. NVCA is recommending key changes be made to FIRRMA that maintain the intent of the bill but mitigate damage to U.S. startups that need capital to grow. Read more
WASHINGTON, DC – At a congressional hearing today before the Senate Committee on Commerce, Science, and Transportation, NVCA Board Chair Venky Ganesan, Managing Director at Menlo Ventures, testified on the critical role of venture capital in supporting innovation in cybersecurity. Since 2010, venture investors have deployed over $14.6 billion in more than 740 cybersecurity companies, including $3.52 billion in 2015 and $2.75 billion in 2016.
“Cybersecurity innovation and venture capital have been inextricably intertwined right from the beginning. Some of the biggest innovations in cybersecurity have been introduced by venture capital backed startups,” said Ganesan in his prepared testimony. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) issued the following statement today after the House Ways and Means Committee passed H.R. 5719, the Empowering Employees through Stock Ownership Act.
“Bipartisan approval by the Ways and Means Committee of this important bill is welcome news for the entrepreneurial ecosystem and startup employees across the country who are unfairly penalized with tax liabilities on vested stock but no liquid market to sell those shares to meet their tax obligations,” said Bobby Franklin, President and CEO of NVCA. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after Democratic presidential candidate Hillary Clinton called for the elimination of the current tax treatment of carried interest during a speech in Detroit.
“In an election season driven by a strong undercurrent of populism, it’s unfortunate to see Hillary Clinton take this misguided position based more on politics of the moment than on sound economic policy. Changing the tax treatment of carried interest for venture capitalists runs counter to other parts of her own economic plan as well as the urgings of many economists who argue that America should encourage long term investment, not stifle it,” said Bobby Franklin, President and CEO of NVCA. Read more
WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after Republican presidential candidate Donald Trump gave a speech in Detroit calling for the elimination of the current tax treatment of carried interest.
“Donald Trump’s call for the elimination of carried interest demonstrates an unfortunate misunderstanding of the critical role it has played in the growth of the U.S. entrepreneurial ecosystem. Despite the populist uproar, carried interest has been an important feature of the tax code that properly aligns the long-term interests of investors and entrepreneurs to build great companies together, and is only realized after our country receives the benefit of greater economic activity,” said Bobby Franklin, President and CEO of NVCA. Read more