The SEC Proposes Rule Defining “Venture Capital Fund”

Today, the Securities and Exchange Commission (SEC), announced a proposed rule that would define “venture capital fund.” This definition is important because it basically determines whether or not VCs will have to register with the SEC as investment advisers. First, a little background. On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (known as the “Dodd-Frank Act”) was signed into law.  Prior... Read More

Rules of the VC Game, Part 2: The Size of the Fund Matters

This is the second article in a series of posts intended to provide entrepreneurs and startups with background knowledge about venture capital financing. Many entrepreneurs and startups nowadays are very skeptical about taking VC money, and with good reason.  Not only do you have to worry about the terms of the specific deal, but also your company’s short and long term goals and how well they align, or don’t, with the VC’s financial... Read More