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Securities and Exchange Commission (SEC)

A U.S. government agency that protects investors, maintains fair, orderly, and efficient markets, and facilitates capital formation.

Venture Capital Fund

A type of investment fund that provides capital to startup companies and small businesses with perceived long-term growth potential.

Investment Advisers Act of 1940

A federal law that regulates investment advisers, defining certain responsibilities and requiring most to register with the SEC.

Exemption from Registration

A legal provision that allows certain entities or activities to operate without having to formally register with a regulatory body, often due to meeting specific criteria.

Qualifying Investment

A specific type of asset or investment that, when held by a fund, allows that fund to meet criteria for certain regulatory exemptions, such as those for venture capital funds.

Equity Security

A financial instrument representing ownership interest in a company, such as common stock or preferred stock.

Qualifying Portfolio Company

A private company (often a startup) that meets specific criteria for investment by a venture capital fund, typically indicating it is not publicly traded and is seeking growth capital.