September 30, 2026 by investor
Regulatory for Private Funds Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Regulatory for private funds includes venture capital funds. VC funds can find an exemption from regulatory requirements by one of the following: Having fewer than 100 owners in the fund. This excludes entities created for the purpose of investing in the fund, such as SPVs or Special Purpose Vehicles. This is known as Section 3(c)(1). A qualifying venture capital fund can have up to 250 beneficial owners if the fund is less than $10M. It must pursue a venture capital investment strategy. It cannot be highly leveraged with debt. It cannot have redemption rights. Section 3(c)(7) concerns a fund that requires qualified investors. A fund cannot have more than 1,999 investors, so it’s not a reporting company. Only qualified investors, not accredited investors, can invest. Qualified investors have $5M invested or they are an entity with $25M of investments. Review the regulatory requirements around a venture capital fund before launching one. 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. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Copyright (c) 2026, Hall Martin and investorconnect.org. All rights reserved.
Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.
