House passes INVEST Act to ease investment standards and boost capital in markets

Core Insights - The INVEST Act, a package of capital-formation bills, was approved by the House with a vote of 302 to 123, indicating bipartisan support for increasing access to private markets [1][2] Group 1: Legislative Changes - The legislation aims to allow more investors access to private markets, facilitating the process for companies to go public and enhancing capital formation for startups [2] - The criteria for becoming an accredited investor will expand beyond wealth or income, allowing individuals to qualify by passing an exam approved by the Securities and Exchange Commission [2] Group 2: Impact on Public Companies - The bill addresses the decline in the number of public companies in the U.S., making it easier for companies to go public and for individuals to invest in new opportunities [3] - The cap for venture capital firms will be raised from $10 million to $50 million, and the number of investors allowed will increase from 250 to 500, easing regulatory burdens [4] Group 3: Market Dynamics - The rise of "unicorn" companies, which are privately held startups valued at $1 billion or more, has created a limited investment landscape for the public, prompting the need for more accessible investment opportunities [5] - The bill is expected to enhance the ability of venture capital firms to invest in one another, potentially increasing funding availability for companies in regions like the Midwest and the South [4] Group 4: Next Steps - The bill will proceed to the Senate, where it is uncertain whether the Senate will adopt the House package, modify it, or create a new bill [6]