US HB4431

Increases the investor limit for qualifying venture capital funds from 250 persons to 500 persons under the Investment Company Act of 1940

Raises the asset threshold for qualifying venture capital funds from $10 million to $50 million, with inflation indexing beginning from the date of enactment

Requires the Advocate for Small Business Capital Formation to conduct a study beginning 5 years after enactment examining the effects on portfolio companies, including geographic distribution of capital, founder demographics, veteran status, and industry sectors

Authorizes the SEC to adjust thresholds through rulemaking after the study if demonstrable positive effects are shown, with the investor limit adjustable between 250-750 persons and the dollar threshold between $10 million-$100 million

Passed the House of Representatives on December 1, 2025