Rounds Introduces Bill to Increase Access to Capital for Start-Ups

WASHINGTON - Senators Mike Rounds (R-S.D.) and Reverend Raphael Warnock (D-Ga.) today introduced the Developing and Empowering Our Aspiring Leader (DEAL) Act to increase access to capital for America's innovators by modernizing the definition of venture capital fund for purposes of Securities and Exchange Commission (SEC) registration. The DEAL Act passed the House of Representatives this week on the suspension calendar. Representative Ann Wagner (R-Mo.) is the lead sponsor.

Specifically, this legislation amends the venture capital fund definition to permit venture capital funds to invest in other venture capital funds as a qualifying investment without triggering the 20% non-qualifying investment limitation.

"The DEAL Act is a straightforward, commonsense step to help American innovators succeed," said Rounds. "By allowing venture capital to include secondaries and fund-of-fund investments, we give young businesses more ways to access the capital they need to grow and stay competitive. This practical update supports early-stage companies, strengthens liquidity and helps keep the United States the best place in the world to build and scale a business."

"This bipartisan legislation will help more investment reach the small businesses and entrepreneurs in Georgia who are too often overlooked. By making it easier to support new businesses and ideas, we can create more opportunity for job growth, economic prosperity, and innovation," said Senator Reverend Warnock.

This legislation is supported by the National Venture Capital Association (NVCA) and the U.S. Chamber of Commerce.

"The DEAL Act is an important step towards ensuring that the next generation of high-growth American companies can start and scale in every corner of the country-not just in traditional tech hubs," said NVCA President and CEO Bobby Franklin. "By modernizing an outdated regulatory definition, this bill makes it easier for capital to reach entrepreneurs in South Dakota, Georgia, and other regions that have the talent and drive but too often lack early investment. After an overwhelming bipartisan vote in the House, we're grateful to see Senators Rounds and Warnock carry this momentum into the Senate. Their leadership reflects a clear understanding that unlocking more early-stage capital means more local jobs, stronger regional economies, and a more competitive America."

Rounds first introduced this legislation in the 115th Congress.

Click HERE for full bill text.

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