Venture Capital Funds in the US - Top 5 Questions About Working with Investors

Are you choosing a country to register an investment fund to attract and manage investments? Then you should definitely learn how American funds work with investors.

Antwort Law specialists have prepared answers to the top 5 questions about working with investors in US-registered funds:

1) Question: Do US funds have limits on the amount of investment they can raise?

There are no limits on the amount of investment per investor, but at the initial stage of a fund's operation, the total amount of investments raised during the year must not exceed $50 million. If you wish to raise this limit, you can do so within six months without ceasing the fund's operations.

2) Question: Can citizens of other countries invest in US venture funds?

While a US fund is best suited for working with local US investors, foreigners can also invest in a US fund. There are restrictions only for investors from sanctioned countries such as Russia, Iran, North Korea, etc.

3) Question: Can a US investment fund work with regular, non-qualified investors?

Yes, a US fund can work with non-qualified investors, although there are additional rules for working with them. The specialists at Antwort Law will help you streamline all the internal processes of a US fund, including working with non-qualified investors.

4) Question: Are there any limits on the number of investors in a US venture fund?

If everything is properly formalized, there is no limit on the number of investors for US funds.

5) Question: Is it possible to invest in a US fund completely remotely, with electronic signing of agreements and uploading of documents (like funds in the Cayman Islands and other offshore jurisdictions)?

Yes, US venture funds operate entirely with the electronic signing of all documents! There is no need to do anything physically. Registering an investment fund in the US is an excellent solution to avoid the hassle of sending physical documents with each investor.

Launching an investment fund, especially in the US, is a complex and expensive decision. But with the support of a reliable partner like Antwort Law, you'll achieve the results you need.

Trust the professionals and schedule a consultation with Antwort Law. We'll be happy to help you navigate every detail of this complex project.

Vladislav Makarenko

Managing partner
Antwort Law