[wpennington]

From 30k ft--in the financial industry, the VC title afforded a carve out from SEC oversight if its business was focused around certain qualifications (e.g., invested primarily in new-early stage private companies).

This classification, in turn, also limits what an entity with a VC status can ultimately do and invest in.

In this case, a16z has ambitions that outstrip the limited definition of VC in the eyes of the SEC. Under their new classification, they still have the monies as an 'investment advisor' but aren't hamstrung on what they can invest in. It will, however, change the way they will be required to operate due to new regulations that come with the investment advisor classification.

Related, an article from the NVCA on the subject from December. [0]

[0] https://nvca.org/blog/need-update-definition-vc-heres/