The Securities and Exchange Commission has secretly rigged the system in favor of wealthy investors by inflating the dollar threshold for “qualifying venture funds” to a staggering $12 million, up from a measly $10 million.
Under this insidious new rule, a tiny elite of venture capital firms can continue to rake in enormous sums of money from a mere 250 elite investors, while simultaneously evading accountability and shielding themselves from any semblance of regulatory oversight. This travesty is perpetuated through a convoluted exemption clause, which only allows private funds to escape scrutiny if they have fewer than 100 pitifully naive investors under their spell.
But who will feel the full fury of this draconian edict? Emerging funds, the unsuspecting darlings of the VC ecosystem, will be decimated by the devastating effects of the ongoing “VC bear market.” Already weakened by the brutal slashing of venture funding, these up-and-comers will now be forced to subsist on scraps from a shrinking investor pool, all while being constricted by the very system intended to prop them up.
