The Securities and Exchange Commission (SEC) has increased the “venture fund” threshold from $10 million to $12 million. This move is advantageous for smaller venture capital (VC) firms, as it allows them to involve up to 250 professional investors without requiring registration as an investment company.
This new development opens doors for smaller VC firms to gain more capital. This will aid the evolution of pioneering undertakings and start-ups. Moreover, with more accredited investors, these firms can broaden their investment portfolios without the tedious procedure of company registration.
SEC enhances small venture fund limit
However, it is unclear how this altered rule will impact the overall investment market in the long run. This change is timely, given the venture capital market has been experiencing a downturn since 2022.
Despite an economic slump, regulatory relief aims to provide a safety net to struggling funds and the start-up ecosystem. It also aims to create a level playing field where small funds can compete in attracting investors. This could potentially boost investments, stimulating the sector’s recovery from the downturn.
Brave laid off 27 staff
In other developments, browser and search start-up Brave recently laid off 27 staff across various departments. Economic pressures and strategic realignment are cited as reasons behind the layoffs. The company aims to refine its operations and stay focused on crucial areas of its business.
In India, start-up founders forecast significant growth and expansion plans. This illustrates the dynamic, progressive landscape within India’s burgeoning tech start-up scene.
Astobotic’s Peregrine lunar lander
Astrobotic’s Peregrine lunar lander has reported a mechanical issue with a valve in its propulsion system, which led to mission failure. Meanwhile, social media magnates Meta and Spotify plan to collaborate on ways to boost music integration within the Instagram app.
Finally, Meta intends to shut down Spark AR, its platform for third-party AR tools and content, by January 14, 2025. At the same time, Waymo is progressing with its plan to provide 24/7 curbside transport services at Phoenix Sky Harbor International Airport’s terminals 3 and 4.
