The Investment Company Act of 1940 is a U.S. federal law regulating entities that are primarily engaged in investing in securities, with extensive requirements around registration, governance, custody, and disclosure. In venture fund structuring, compliance with the Investment Company Act of 1940 is typically achieved through exemptions (such as 3(c)(1) or 3(c)(7)), and violating Investment Company Act of 1940 status can be highly disruptive.
