The Securities and Exchange Commission announced details of a meeting to be held by its Small Business Capital Formation Advisory Committee on Nov. 13.
The meeting will include a discussion of how venture capital fund managers are raising capital, including the limits of ‘arm’s length fundraising’ and the challenges facing emerging fund managers.
The committee, which has been exploring ways to expand early-stage capital raising, will focus on how capital is being accessed by certain fund managers.
According to the SEC, Professor Sabrina Howell of the New York University Stern School of Business will present her upcoming academic paper that examines venture capital fund manager use of relationship-based versus arm’s length public advertising approaches to fund-raising. She will discuss the advantages and challenges of public advertising for traditionally underrepresented managers.
Also on the agenda for the meeting is an overview from staff members from the SEC’s Division of Investment Management of the registration framework applicable to private fund advisers and their funds. The framework includes those exemptions from the registration requirements of the Investment Advisers Act of 1940 and the Investment Company Act of 1940.
In addition, the committee will discuss the challenges that emerging fund managers’ report facing when seeking to raise investment funds.
Karen Kerr, PhD, Board Member and Charter Class, Kauffman Fellows and Managing Director, Exposition Ventures, will discuss how new fund managers can be supported and promoted through fellowship programs.
As part of this discussion, the committee will explore ways to address some of the challenges facing emerging fund managers. It will consider any regulatory or other solutions that could further support these managers and the early-stage companies they invest in.
The Small Business Capital Formation Advisory Committee, which meets quarterly, was established by the SEC Small Business Advocate Act of 2016. It is designed to provide a formal mechanism for the agency to receive advice and recommendations on SEC rules, regulations and policy matters relating to small businesses, including smaller public companies.
Members of the public will have the opportunity to watch the live meeting via webcast on www.sec.gov.
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