What are Qualifying Investments?

In venture capital, a qualifying investment is a direct investment into a private company, while a non-qualifying investment is an investment into any other asset (including investments into other funds, cryptocurrency, real estate, secondaries transactions, and other alternative assets). Investors who participate in non-qualifying investments over a certain threshold (over 20% of their entire portfolio), and who manage $150M+ in investments overall, may no longer benefit from certain VC exemptions.