Source: United States House of Representatives – Representative Sean Casten (IL-06)
Washington, D.C. — The House Committee on Financial Services voted to approve the Developing and Empowering our Aspiring Leaders (DEAL) Act, bipartisan legislation led by Democratic Congressman Sean Casten (IL-06) and Republican Congresswoman Ann Wagner (MO-02) that would support innovation, entrepreneurship, and capital formation.
“The DEAL Act increases capital flows to smaller venture capital funds by providing greater flexibility to fund managers, while still ensuring that investors are protected and that fund managers continue to prioritize direct investments in small businesses,” said Rep. Sean Casten. “I’m proud to join Congresswoman Wagner in fighting for this legislation that ensures capital reaches the communities and innovators that need it most, spurring growth in the startup ecosystem.”
Venture capital is driving innovation in Illinois and helping local startups thrive. Between 2019 and 2023, more than 1,900 Illinois-based startups received over $26 billion in support from the venture capital community, which has created hundreds of thousands of jobs. In 2023, venture capital funds invested over $66 million in small businesses in Illinois’ Sixth Congressional District. A broad range of Illinois-based pension funds, university endowments, and nonprofits benefit from these investments in high-growth companies. The DEAL Act will help venture capital fund managers in Illinois and the Midwest continue to grow and invest in more innovative startups in their local and regional economies.
The DEAL Act modernizes venture capital fund rules and enhances flexibility while maintaining a strong focus on direct investment in startups. Specifically, it directs the Securities and Exchange Commission (SEC) to revise rules governing venture capital fund qualifications. Within 180 days of enactment, the SEC must:
Text of the legislation can be found here.
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