The Inflation Reduction Act (IRA) of 2022 includes numerous provisions aimed at combating climate change through investments in clean energy and carbon emission reduction technologies, offering tax incentives and funding opportunities for companies involved in renewable energy, carbon capture, and energy storage solutions.

The CHIPS and Science Act of 2022 allocates billions of dollars to boost domestic semiconductor manufacturing and research, aiming to reduce reliance on foreign suppliers and strengthen national security. It includes incentives for companies to build, expand, and modernize semiconductor facilities in the United States. This promotes significant R&D investments in AI and Semiconductors industries. The US government also mandates the companies who get grants from CHIPS act not to expand certain manufacturing in other countries like China, resulting in changes in global expansion plans. The CHIPS act directly affects Advaita Capital's investment areas in semiconductors and AI/ML in short and long term and investment strategies will need to take into account of this policy change and potential benefits from it. This policy has potential to benefit the fund and the portfolio companies and attract additional investors in those areas. Therefore, this is a positive impact and the fund should leverage this policy change in investment strategy. This policy also may help attract and retain engineering talents in the US, helping the portfolio companies build their talents faster and more efficiently. This is especially helpful when the companies are going through rapid expansion phases. Advaita can also take advantage of the benefit to help portfolio companies to expand their manufacturing in US, if applicable. The fund should also build relationship with US Department of Commerce (DOC) to monitor policy changes and maximize benefits for the fund and portfolio companies. This will require additional resources to stay current with the policy changes. This is an additional cost for Advaita Capital and has to be accounted for when the fund is managing the portfolio companies and their investment strategies. Advaita Capital should also be aware of global reaction to the CHIPS act and resulting international relationship changes as the US increases its semiconductor and AI/ML investments. As the portfolio companies expand global, this aspect is important to consider and build global relationships. Therefore, building a dedicated team to monitor global relationship changes and changes in international policies should be considered. In summary, the CHIPS act has both positive and negative effects and the fund should properly allocate resources to monitor and build relationships with stakeholders to maximize the benefits and minimize the risks and global relationship changes and their impacts. In the end, it will require more capital to manage the policies and international relationships and it will create additional work for the portfolio companies. All these should be properly planned when the fund plans the investments. Finally, there are many changes for the fund and the portfolio companies to be aware of to ensure they make the appropriate decisions and plans for both short and long term.

Recent years have seen increased scrutiny and enforcement of antitrust laws by regulatory bodies like the FTC and DOJ, particularly concerning mergers and acquisitions in the technology sector. The goal is to prevent monopolistic behavior and promote competition, with a focus on digital markets and emerging technologies. This policy has been reflected in US, Europe, and China. This has created a trend that Venture Capital should be aware of.