Section 870-RICR-30-00-7.6 - Certified Venture Capital PartnershipA. Eligibility 1. Any partnership formed under the laws of Rhode Island meets the following criteria:a. has at least three (3) partnerships each of whom has contributed at least five thousand dollars ($5,000) and who have contributed in the aggregate at least two hundred fifty thousand dollars ($250,000) to the partnership,b. employs a professional manager who is an individual with prior experience managing venture capital funds,c. is organized and operated to invest at least ninety percent (90%) of the amounts contributed to its capital in qualifying activities and is registered or exempt from registration under the securities laws of Rhode Island andd. has bonded its employees to fully cover all funds received from partners.B. Certification/Recertification 1. The partnership has filed with the Corporation such information as may be requested describing its organization, operation and programs and has received certification and annual recertification from the Corporation.C. Qualifying Activities 1. "Qualifying activities" shall mean to provide capital:a. to invest in one or more qualifying business entities whose principal office and the majority of whose assets are located in Rhode Island, orb. to invest a portion of its funds, as set forth herein, in one or more qualifying business entities whose principal office is located outside of Rhode Island and who have entered into binding commitments to establish, expand or increase its operations at a regular place of business in Rhode Island, orc. to invest a portion of its funds, as set forth herein, in research and experimental expenditures (as defined in 26 U.S.C. § 174.) conducted in Rhode Island to assist those qualifying business entities in which such partnership has or would be able to invest.D. Limits of Investment 1. A certified venture capital partnership commencing with its first years of operation, or after there has been a forty percent (40%) change in ownership or the admission of new partners whose contributions have increased the capital of the partnership by at least sixty-five percent (65%), may invest in the aggregate up to the following total portion of its investments made during each year in the types of investments described in §§ 7.6(C)(1)(b) and (c) of this Part. Year | Portion |
1 | 50% |
2 | 40% |
3 | 30% |
4 | 30% |
5 | 30% |
6 and subsequent years | 20% |
870 R.I. Code R. 870-RICR-30-00-7.6