Bessemer Venture Partners, one of the oldest venture capital firms, is now a registered investment adviser with the U.S. Securities and Exchange Commission. The regulatory designation historically reserved for hedge funds and other asset managers will allow the VC firm to hold investments other than direct stakes in private companies, such as public equities, cryptocurrency assets and secondary shares.
The San Francisco–based investment firm’s decision to give up the standard VC status comes after Andreessen Horowitz and General Catalyst made the same decision in 2019, followed by Sequoia Capital earlier this year. Becoming registered advisers gives these firms an edge in an increasingly competitive industry as firms like Tiger Global Management and Coatue Management, which invest in a range of assets, go after VC deals.
