1241

This chapter shall be known and may be cited as the '1996 Investment Capital Fund Act of Puerto Rico'. The purpose of this chapter is to encourage Puerto Rico’s economic development through the joint participation of the private and public sectors in the generation of investment capital geared exclusively towards high-risk projects, businesses or activities located in Puerto Rico for which traditional capitalization is not easily obtained by private enterprise. The public sector’s participation shall be limited to the selection of economic activity sectors that must be stimulated by offering adequate tax incentives, and fixing the general norms to establish and operate the investment funds or other investment entities that are generated, and to supervise the strict compliance of such established norms.\nOn the other hand, the private sector will risk its own funds and shall be charged with carrying out and administering those activities it selects within the general framework fixed by this chapter and by the regulations adopted by virtue thereof.\nIn general terms, the purpose sought through this chapter is to stimulate the formation of venture capital to be invested in projects,

this chapter and by the regulations adopted by virtue thereof.\nIn general terms, the purpose sought through this chapter is to stimulate the formation of venture capital to be invested in projects, businesses or enterprises of an embryonic nature, or that are in the first stages of their development or growth, as described in § 1243 of this title.\nHistory —Oct. 6, 1987, No. 3, p. 840, § 1; July 11, 1996, No. 70, § 1.