The U.S. House of Representatives unanimously passed H.R. 4431, the Improving Capital Allocation for Newcomers (ICAN) Act. The ICAN Act is a straightforward fix that updates the Qualifying Venture Capital Fund Exemption under Section 3(c)(1) of the Investment Company Act by raising the cap on permissible fund size from $10 million to $50 million and increasing the allowable number of investors from 250 to 500. 

These changes are designed to help venture capital funds raise more investor capital and improve access to funding for startups and growing businesses—especially outside traditional financial hubs.

“Three-quarters of venture capital supports entrepreneurs in just three states: California, Massachusetts, and New York,” said Rep. William Timmons. “Congress must ensure that all Americans have greater access to the capital they need to keep our nation at the forefront of innovation. The ICAN Act is a commonsense, bipartisan step toward making it easier for American startups to grow, hire, and build here at home.”

The full bill text can be found HERE.