Press Releases

Today, H.R. 3383, the Incentivizing New Ventures and Economic Strength Through Capital Formation (INVEST) Act, passed the U.S. House of Representatives by 302 to 123. Led by House Committee on Financial Services Chairman French Hill (R-AR), Capital Markets Subcommittee Chairman Ann Wagner (R-MO), Rep. Gregory Meeks (D-NY), and Rep. Josh Gottheimer (D-NJ), the INVEST Act will cut red tape in Washington, empower entrepreneurs and small businesses, and provide Americans with the opportunity to more freely invest.

Congressman Hill said, “As a former community banker in central Arkansas, I saw firsthand how outdated rules kept hardworking Arkansans from participating in private investment opportunities, how much of venture capital remains on the coasts, and how businesses struggled to tap the investment resources they needed to grow.

“As Chairman of the Financial Services Committee, one of my main priorities is to tackle those challenges and level the playing field so the American Dream is within reach for every family and community in our state and across the nation. The INVEST Act will expand investment opportunities for all Arkansans, allow families to save more for retirement, help businesses grow, and help states like Arkansas attract capital like never before.

“I am extremely proud of the bipartisan work of this committee. I commend Subcommittee Chair Ann Wagner for her tremendous leadership, and I am eager to see this legislation signed into law.”

Clint O’Neal, Executive Director of the Arkansas Economic Development Commission, said, “In Arkansas and across the country, small businesses are the heart of our economy. The INVEST Act will give more entrepreneurs the opportunity to turn their dreams into reality and help bring more capital to the heartland of America. Thanks to Congressman Hill for his leadership on this important legislation.”

Jeff D Standridge, Managing Partner of Cardon Capital Partners, said, “As a venture fund manager in Arkansas, I see firsthand how talented entrepreneurs across the Midwest and rural America struggle to access the early-stage capital that flows so easily to the coasts. The INVEST Act finally levels that playing field. By modernizing outdated rules, expanding who can invest, and reducing the red tape that holds back small businesses, this legislation will unlock innovation, fuel job creation, and ensure that the next generation of great American companies can be built not only in Silicon Valley, but in communities like ours across Arkansas.”

Jeff Amerine, Founder & Managing Director, Startup Junkie Consulting & General Partner, Cadron Capital Partners, said, “As a nine-time serial entrepreneur and active early-stage investor with a portfolio of more than 90 investments, I am very much in favor of improving capital access in the heartland, making private company investment easier for the general public, and streamlining the IPO process.  I believe the Invest Act will go a long way toward addressing critical issues that today restrain venture growth.”

James K. Hendren, Ph. D., Chairman of The Venter Center Board, said, “The INVEST Act will significantly improve the investment options for middle America and middle-income individuals. Previous rules limited private investments to only the higher-wealth people.  Even though these investments may include some more risk, the upside opportunities are significantly increased.  Even more important is the opportunity that earlier-stage companies would have in getting funding from knowledgeable investors, which encourages and allows great growth in establishing new companies that create many new jobs.”

Background

The last major legislative effort to improve capital formation was the bipartisan JOBS Act of 2012, which successfully reduced barriers for small and emerging companies and created new pathways for growth. Since then, regulatory burdens have only grown heavier, falling hardest on smaller firms that lack the scale of Wall Street giants. These one-size-fits-all requirements discourage startups from pursuing Initial Public Offerings (IPO), push companies to remain private longer, and make it harder for local entrepreneurs to attract investment.

The INVEST Act, sponsored by Capital Markets Subcommittee Chair Ann Wagner (MO-02) and cosponsored by Representative Gregory Meeks (NY-05), will cut Washington red tape, empower small businesses and entrepreneurs, and give Americans more freedom to invest.

Why Is the INVEST Act Needed?

• Nearly all venture funding pours into just a few coastal cities, leaving job-creating entrepreneurs from across the Midwest, South, and rural America often overlooked when trying to raise capital.
• Current rules for investing in private markets are obsolete, relying on wealth instead of financial knowledge. This unfairly bars millions of Americans from investing in promising, early-stage companies.
• Public markets are shrinking: the number of U.S. public companies has fallen from 8,800 in 1997 to fewer than 4,000 today, costing jobs and limiting investment options for retirement savers.

The INVEST Act Will Expand Access to Capital for Small Businesses:

• Cuts red tape so startups and small businesses can raise capital more efficiently, increasing American competitiveness, economic growth, and job creation.
• Updates outdated investment thresholds that have prevented small companies from utilizing every available method of raising capital.
• Ensures capital reaches beyond Wall Street and Silicon Valley to entrepreneurs across the heartland.

The INVEST Act Will Increase Opportunities for Investors:

• Expands investment opportunities for Main Street investors, ensuring retirement savers – not just Wall Street insiders – share in the success of tomorrow’s leading companies.
• Modernizes the accredited investor definition so education, professional credentials, and experience – not just wealth – determine whether an individual can invest in private offerings.
• Opens up investment options for Americans by eliminating restrictions on the types of financial products available in certain retirement accounts.
• Protects seniors by increasing safeguards and resources to combat financial fraud and exploitation.

The INVEST Act Will Strengthen Our Public Markets:

• Streamlines disclosure requirements to make it faster, simpler, and more practical for companies to go and stay public.
• Gives businesses more flexibility to raise capital on competitive terms, helping them grow in America instead of overseas.
• Modernizes how companies can test the market for an initial public offering, allowing them to assess demand before incurring the full cost of going public.