Venture capitalists said on Wednesday they should be exempt from President Obama's proposed changes in financial regulation, arguing they were not part of the problem.

The National Venture Capital Association, the trade association of venture capitalists, said their industry is relatively inconsequential compared to other parts of the financial industry.

We believe that the entrepreneurial risk associated with the venture capital industry is not relevant to the systemic risks which the Administration is hoping to mitigate with this reform, Jennifer Connell Dowling, vice president for federal policy, said in a written statement by the group.

The industry said it does not utilize leverage on a significant scale nor does it trade stocks or derivatives in the financial markets. Investors in venture capital do not rely on their invested funds for short term liquidity.

The NVCA represents about 460 venture firms in the United States.

(Reporting by David Lawsky; Editing by Richard Chang)