Improving Capital Allocation for Newcomers Act of 2021

This bill amends the Investment Company Act of 1940 to make it easier for venture capital funds to raise capital. It increases the maximum number of investors allowed under the 3(c)(1) exemption from 250 to 2,000 people and raises the asset threshold from $10 million to $150 million. These changes directly affect qualifying venture capital funds seeking to operate under this exemption. The result is that such funds can now manage larger investments and attract more investors while remaining exempt from certain registration requirements.