Improving Capital Allocation for Newcomers Act of 2025

Floor Speech

I rise in support of H.R. 4431, the Improving Capital Allocation for Newcomers Act of 2025, or ICAN Act, offered by Mr. Timmons and Ms. Pettersen.

Like the DEAL Act, the ICAN Act also amends the definition of ``venture capital fund'' under the Investment Company Act. Currently, in order to qualify as a venture capital fund under this act, a private fund must hold $12 million or less in assets and have no more than 250 investors. This bill adjusts those figures upward, raising the cap to $50 million and the investor limit to 500.

It also requires the SEC to conduct a study 5 years after enactment to determine the bill's impact on how capital is being allocated to companies owned by these venture funds. Based on the results of the study, the SEC could further adjust the $50 million and 500 beneficial owner limit upward or downward.

The ICAN Act should help venture funds to more widely invest in small and growing businesses.

Mr. Speaker, I urge all colleagues to support H.R. 4431 to make it easier for capital to flow to startups and small businesses. This bill does so by increasing the dollar size and number of investors for venture funds.

Additionally, it requires the SEC to conduct a study that examines how funds are invested across several metrics, including the veteran status of a company's founders, geographical location, and industry sector, size, and state of development. Based on the results of this study, the SEC would be authorized to adjust the bill's limits upward or downward by a tailored amount, if needed.

Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

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