II 115th CONGRESS 2d Session S. 3576 IN THE SENATE OF THE UNITED STATES October 11, 2018 Mr. Rounds introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Securities and Exchange Commission to revise the definitions of a qualifying portfolio company and a qualifying investment to include an emerging growth company and the equity securities of an emerging growth company, respectively, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940.

1. Short title This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2018 . 2. Definitions Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall— (1) revise paragraph (a) of section 275.203(l)–1 of title 17, Code of Federal Regulations, to require, as a condition of a private fund qualifying as a venture capital fund under that paragraph, that the qualifying investments of the private fund are predominantly qualifying investments that were acquired directly from a qualifying portfolio company; and (2) revise the definition of a qualifying investment under section 275.203(l)–1(c) of title 17, Code of Federal Regulations, to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition.