Developing and Empowering our Aspiring Leaders Act of 2025 in plain language
1: Short title
This section would let the Act be cited as the "Developing and Empowering our Aspiring Leaders Act of 2025."
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1. Short title This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2025 .
2: Definitions
This section would require the Securities and Exchange Commission, by the end of the 180-day period after this Act becomes law, to revise its venture capital fund adviser rule (section 275.203(l)-1 of title 17, Code of Federal Regulations) in two ways. First, the SEC would have to change the definition of "qualifying investment" in paragraph (c) of that rule so that it includes an equity security issued by a qualifying portfolio company, whether the security was acquired directly from the company or through a secondary acquisition, and so that it specifies that an investment in another venture capital fund also counts as a qualifying investment. Second, the SEC would have to revise paragraph (a) of that rule so that a private fund could qualify as a venture capital fund only if its qualifying investments are either predominantly investments acquired directly from a qualifying portfolio company, or predominantly investments in another venture capital fund or other venture capital funds.
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2. Definitions Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall— (1) revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations— (A) to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and (B) to specify that an investment in another venture capital fund is a qualifying investment under such definition; and (2) revise paragraph (a) of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments of the private fund are either— (A) predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or (B) predominantly qualifying investments in another venture capital fund or other venture capital funds.