Understanding the Mechanics of Venture Capital: A Comprehensive Guide to the VC Industry

## **Learn the Regulatory Definition of a Venture Capital Fund | Venture Capital 101 Course – Chapter 2**

Are you considering launching a venture capital (VC) fund? Before you take the plunge, it’s important to understand the regulatory definition of a venture capital fund. In this chapter of Carta’s Venture Capital 101 course, legal expert Sam breaks down the key requirements that distinguish a VC fund from other types of investment funds.

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### **Video Transcript Highlights:**

In this video, Sam, a legal expert at Carta, explains the legal definition and regulatory requirements that define a venture capital fund. Understanding these requirements will give you a comprehensive understanding of the VC landscape when starting a fund.

Points discussed include:
1. The misconception that all funds making VC investments are venture capital funds.
2. The unique regulatory features that distinguish VC funds from other types of funds.
3. The five core requirements that a VC fund must meet under the Investment Advisors Act of 1940.
4. A plain English translation of the legal jargon associated with each requirement.
5. The benefits of qualifying as a venture capital advisor under the Investment Advisors Act.

Please note that this video provides a general summary of the criteria for qualifying as a VC fund. It is advisable to consult your own legal counsel to ensure compliance with regulatory requirements.

### **Next Lesson:**
In the next chapter, we will delve into the structure of a venture capital fund. Click the button below to continue your learning journey.

**Continue to Chapter 3 – VC Fund Structure**

In Chapter 2 of Carta’s Venture Capital 101 course, you’ll learn about the regulatory definition of a venture capital fund. Stay up-to-date on the latest courses, get new tips and tools, plus enjoy early access to upcoming virtual training sessions when you subscribe to our newsletter: https://carta.com/subscribe/venture-capital-101-newsletter/?utm_campaign=20230523-amer-vc-ftf-vc_101&utm_medium=social&utm_source=youtube

For more, visit: https://carta.com/learn/vc-101/?utm_medium=social&utm_source=youtube