Funds
CFIUS Reform UPDATE: Implications of FIRRMA for Fund Managers
UPDATE (October 8, 2020) We are providing updates on our original post here to reflect the issuance of a final rule by the U.S. Treasury Department which will become effective on October 15, 2020. Between November 2018 (when the first regulations implementing FIRRMA came into effect) and October 15, 2020 […]
SEC Proposes Registration Exemption for “Finders”
The SEC has proposed new rules that would clear up the longstanding difficulty a venture capital fund manager has faced when wanting to use a “finder” for investors in the fund and such “finder” is not licensed as (or associated with a licensed) broker-dealer. This article discusses the application of […]
Investment Funds Beware: Proposed HSR Amendments Would Increase Reporting Obligations
The US Federal Trade Commission and Department of Justice announced proposed changes to the rules governing Hart-Scott-Rodino (HSR) filings that, if implemented, would significantly increase the number of transactions that must be reported to the antitrust agencies – primarily by private equity, venture capital and other investment funds – as […]
SEC Broadens the Definition of Accredited Investor to Permit Greater Access to Fund and Other Private Offerings
On August 26, 2020, after over a year’s worth of work examining how it may better simplify, harmonize and improve the framework and rules around exempt offerings under the Securities Act of 1933, as amended (the “Securities Act”) and heighten protections for investors participating in such offerings, the Securities and […]
Let the Spigot Open: Volcker Rule Relaxed to Allow More Bank Investments in VC Funds
Prior to the effectiveness of the Volcker Rule in April, 2014, we more regularly saw banks participating as limited partners in venture capital funds. The rule placed significant limitations on banks’ ability to make investments in private funds, and over the last 6 years the frequency of investment and capital […]
Primer: Selecting the Domicile for your Venture Capital Fund
We are often asked, by both new and established managers, “where should I form my next venture capital fund”? We will hold the short list for purposes of this article at the discussion of Delaware versus Cayman, those being far and away the most prominent places for venture capital funds […]
Employment Issues for U.S. Venture Capital Firms to Consider as They Prepare to Return to the Office
As the COVID-19 pandemic continues, most U.S. venture capital firms have been subject to federal, state or local directives to “shelter in place” since March. Thanks to the nature of the venture capital business, most firms were likely able to convert the bulk of their employees to a remote working […]
Initial Observations Regarding COVID-19’s Impact on Venture Capital Fund Raising
As much of the world shelters in place, nearly every client conversation we have with our venture capital fund clients comes around to some version of the questions “what are you seeing” and “will all of this impact our fund raising plans”. We acknowledge the lack of clarity, at present, […]