Regulatory Around the Fund Manager

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are regulations around the fund manager.

A fund manager is considered an investment advisor, which is defined as anyone who provides advice to others regarding securities in exchange for compensation.

VC fund managers must register with the SEC unless they qualify as an exempt reporting advisor.

They are not required to report if they do meet certain asset requirements.

Assets under management less than $25M register with the state rather than the SEC.

Assets under management from $25M to $110M may register with the state or the SEC.

Assets under management greater than $110M must register with the SEC.

Fund managers can be classified as an exempt reporting advisor (ERA) if they solely advise private funds and the total assets under management are less than $150M.

The Venture Capital advisor exemption is for fund managers who solely advise venture capital funds.

They can raise an unlimited amount of capital.

Consider these regulatory rules for your fund manager.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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