News Releases

WASHINGTON - U.S. Senators Jerry Moran (R-Kan.), Mark Warner (D-Va.) and Tim Scott (R-S.C.) today introduced the Expanding American Entrepreneurship Act. This legislation would expand the permitted size of angel funds to allow for a higher number of investors in start-up companies.

By growing the number of individual investors per angel fund and raising the cap on the fund, more investors will be able to invest at a lower rate. This will allow new investors who have less access to capital to invest in start-ups, diversifying the funding base for new companies.

“Investing in start-ups shouldn’t be a privilege reserved for only a select group of individuals,” said Sen. Moran. “By increasing the allowed number of investors for angel fund and the max these funds are able to receive, Main Street will have more access to investing. This will also expand opportunities for entrepreneurs to secure investments for their start-ups. Entrepreneurship is the bedrock of the American economy. Allowing a larger pool of Main Street investors the ability to raise capital for American small businesses is crucial to more companies choosing to go public.

“I was in business world for decades, long before I entered politics, so I know that investing in start-ups is an excellent way to get in on the ground floor of a new business and help provide it with the capital to operate and grow,” said Sen. Warner. “This bipartisan legislation will allow entrepreneurs to raise more funds with more contributors, enable start-ups to gain access to a new pool of investors, and give individuals with less access to capital more opportunities to invest at lower rates.”

“Our capital markets are the global gold standard, but too often it’s Wall Street, not Main Street, that has access to them,” said Sen. Scott, ranking member of the Senate Banking Committee. “That has to change. As the top Republican on the Senate Banking Committee, I’m glad to join this effort to allow more investors to participate in funds that help provide small businesses with the resources necessary to grow their operations and create good-paying jobs.”

This legislation expands on the Economic Growth, Regulatory Relief and Consumer Protection Act, which was signed into law in 2018 and included provisions by Sen. Moran to increase investment opportunities.


The Expanding American Entrepreneurship Act would:

  • Increase the max number of permitted angel investors from 250 to 500.
  • Raise the cap on angel funds from $10 million to $50 million.

“Entrepreneurship is the driving force of economic growth and job creation in America, and capital is a critical resource entrepreneurs need to turn their innovative ideas into thriving businesses,” said John Dearie, president of the Center for American Entrepreneurship. “Many new businesses – particularly those that have the potential to grow very quickly – rely on investors who provide early-stage capital in exchange for an equity stake in the company. The bipartisan Expanding American Entrepreneurship Act addresses this problem by expanding parameters of section 3(c)(1) of the Investment Company Act to permit emerging fund managers to raise larger funds with a higher number of permitted investors. We look forward to working with them and their Senate and House colleagues to see the bill swiftly enacted into law.”

"As the voice of over 16,000 accredited angel investors, we applaud Senators Mark Warner (D-VA), Jerry Moran (R-KS), and Tim Scott (R-SC) for introducing the Expanding American Entrepreneurship Act," said Pat Gouhin, CEO of the Angel Capital Association.  "There is a critical need for more early-stage capital to help fund the diverse American startups that angel investors support. By allowing funds to raise money from a larger pool of accredited investor prospects, the bill will help early-stage startups throughout the country raise the capital they need to create the next generation of innovative high-growth companies."

"Venture capital is the economic engine of innovation—driving capital to the entrepreneurs who are building the future,” said Anthony Cimino, Head of Public Policy at Carta. The Expanding American Entrepreneurship Act enables emerging managers to raise more capital from more investors, fostering the development of localized networks and providing greater access to capital for founders across the country.”

# # #