Geithner calls for regulation of Venture Capital
US Treasury Secretary Tim Geithner has called for tougher rules on Private Equity. These new rules will cover Hedge Funds and also Venture Capital funds. This would require some Venture Capital firms who manage assets of a certain size to register with the SEC. However, smaller Venture Capital firms will probably not have to register.
It is unclear how this will pan out. However, I can’t see it having a noticeable impact on business start-ups in the US. This is more to do with the nature of VC funding rather than the possible new regulations.
The extent and type of the regulation and the size requirements to register with the SEC must be reviewed in order to make any predictions on the future implications of this regulation.
Initially, I think that from a start-up’s perspective things won’t change very much. It seems that only the largest of VC funds will come under any new regulation.
