Washington, DC — Congressman William Timmons (SC-04) recently introduced H.R. 4243, the Improving Capital Allocation for Newcomers (ICAN) Act of 2021. This bill modifies the Qualifying Venture Capital Fund Exemption under Section 3(c)(1) of the Investment Company Act of 1940 by increasing the cap from $10 million to $150 million and increasing the allowable number of investors from 250 to 600. These adjustments were recommended by the U.S. Securities and Exchange Commission’s (SEC) Small Business Capital Formation Advisory Committee and would be codified into law under the ICAN Act.

“Three-quarters of venture capital supports entrepreneurs in just three states: California, Massachusetts, and New York,” said Rep. William Timmons (SC-04). “To aid our economic recovery across the country, we must do everything we can to help new entrepreneurs and businesses get on their feet. The ICAN Act raises the caps on venture capital and the number of investors as recommended by the SEC’s Small Business Capital Formation Advisory Committee. Helping a new set of overlooked entrepreneurs, particularly women and minorities, will allow more newcomers to access the capital they need for success and help our economy get back on track.”

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