House passes two tech investment bills

The House passed two bills aimed at improving conditions for startup investing. The Fix Crowdfunding Act (HR 4855) raises the amount that a company can crowdfund, from $1 million to $5 million. A 2012 law opened up the rules for crowdfunded investments, but Republicans say the rules still need to be tweaked. The bill was approved by a vote of 394-4. “These bills today are targeted fixes to restore the original spirit of the JOBS Act: To harness innovation and bring together millions of Americans with potential new businesses through crowdfunding,” Majority Leader Kevin McCarthy (R-CA) said. The new crowdfunding rules went into effect earlier in 2016, after being formally approved by the Securities and Exchange Commission in 2015.

The second bill, Supporting America’s Innovators Act (HR 4854), would expand the legal limit on investors in venture funds doing early-stage funding that can help a company get off the ground — called angel investing — to 250 from 100. The legislation passed 388-9. Both bills are part of a House GOP initiative focused on passing bills related to the tech industry and innovation in the months before November’s elections. Democrats have backed a similar initiative.