By Kim Hart - 10/05/09 12:03 PM EDT
Venture capitalists breathed a collective sigh of relief Thursday when a proposal from the House Financial Services Capital Markets Subcommittee did not seek to treat them like private equity firms or hedge funds.
Venture capital investors had been lobbying against such a measure, saying that being required to register with the Securitiesand Exchange Commission like hedge funds and other private pools of money was unnecessary and expensive.
NVCA's chairman, Terry McGuire, who is also a partner of Polaris Ventures in Boston, will testify before the committee at a hearing on the issue Tuesday.
On Thursday, Rep. Barney Frank (D-Mass.), chairman of the financial services committee, said in a hearing that venture capitalists would not have to worry about the registration requirements.
A recent study commissioned by NVCA showed that venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in 2006.
Read more about the issue here.