The Securities and Exchange Commission announced details of a public meeting to be held by its Small Business Capital Formation Advisory Committee on February 24.
The committee 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.
At the meeting, the committee will continue its discussion on potential regulatory improvements regarding “finders” who assist companies with raising capital in private markets from accredited investors. Discussing this topic will be Steven Jafarzadeh, chief compliance officer and partner at Stonehaven, who will speak with the committee about how the current regulatory framework affects “finders.” .
During the afternoon session, the committee will hear from SEC Office of the Advocate for Small Business Capital Formation staff, who will provide an overview of the office’s 2025 Staff Report. The report includes in-depth data on the state of capital raising activity from startup to small cap. The session will also explore the private secondary market and how it has grown to fill liquidity needs and meet investor demand for private securities and its impact on the venture landscape.
The SEC said that continuation funds, special purpose vehicles, and private tender offers have become more prevalent as ways to rebalance portfolios and provide liquidity to investors and employees. To better understand the private secondary market and related deal flow drivers, trends, opportunities, and challenges that stem from private secondary transactions, the committee will hear from Emily Zheng, senior research analyst at Pitchbook; Nigel Dawn, managing director at Evercore; and William Duval, special counsel at Cooley LLP.
The meeting will be held at the SEC Headquarters in Washington, D.C. at 10 a.m. and will also be webcast on the SEC’s website.
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