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Updated Marketing Rule FAQ Relieves Fund Managers From Calculating Investment-Level Net Returns

On March 19, 2025, staff from the Securities and Exchange Commission (SEC staff) updated its prior guidance regarding the requirement to show net returns of an individual investment, or subset of investments, in compliance...more

California’s Broad Venture Capital Diversity Reporting Law Amended to Now Take Effect in 2026

As we previously reported, in October 2023, California enacted SB 54, a law requiring venture capital (VC) firms with a nexus to California to report data regarding the diversity of the founding members of the portfolio...more

Form SHL Due August 30: Foreign Investors’ Holdings of US Securities

As part of a mandatory survey conducted by the Department of the Treasury, US-resident entities, including venture capital and private equity funds, may be required to report information regarding their non-US resident...more

11th Circuit Fearless Fund Ruling Raises Questions About Future of Race-Conscious Corporate DEI and Philanthropic Initiatives

On June 3, 2024, the US Court of Appeals for the 11th Circuit ordered entry of a preliminary injunction blocking venture capital firm Fearless Fund from administering a grant program through its philanthropic foundation for...more

Venture Capital Fund Managers’ Guide to Applying the Latest Marketing Rule Risk Alert

One of the most important documents for fund managers is the marketing deck. Whether it’s to raise a new fund or a special purpose vehicle, or just to build relationships with prospective investors, every fund manager has...more

Securities Laws Fundamentals for Venture Capital Fund Managers

If you’re starting out as a new firm and raising your first fund (or special purpose vehicle), there are a few securities laws principles that you’ll need to become familiar with. This post is intended to provide a quick...more

California Adopts New Law Requiring VC Companies to Collect Diversity Data From Portfolio Company Founders

California’s governor recently signed into law SB 54, a bill intended to increase transparency regarding diversity of founding teams in the venture capital (VC) industry. The new law will require VC companies, including...more

Facing the SEC’s New Rules for Venture Capital and Other Private Fund Advisers

Just over a month ago, the Securities and Exchange Commission (SEC) adopted new rules for venture capital (VC) and other private fund advisers under the Investment Advisers Act of 1940 (Advisers Act). These new rules, which...more

Venture Capital Advisers Not Off-Limits for SEC Scrutiny

In the past six months, the Securities and Exchange Commission has settled a number of enforcement actions against venture capital advisers who are exempt reporting advisers (ERAs) and not registered investment advisers...more

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