The venture capital fund adviser exemption allows advisers to venture capital funds to avoid certain regulations under the Investment Advisers Act. A venture capital fund is a private fund that pursues a venture capital strategy, holds no more than 20% of assets in non-qualifying investments, does not borrow or incur leverage and does not grant investors redemption rights. See Qualifying Venture Capital Fund
Read more: https://www.strictlybusinesslawblog.com/2018/05/31/the-venture-capital-adviser-exemption-explained/