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Press Release

SEC Small Business Advisory Committee to Discuss Approaches to Venture Capital Fundraising and Challenges Facing Emerging Fund Managers

For Immediate Release

2024-175

Washington D.C., Oct. 25, 2024 —

The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee today released the agenda for its meeting on Wednesday, Nov. 13, 2024. The meeting will include a discussion of how venture capital fund managers are raising capital, including the limits of arm’s length fundraising and challenges facing emerging fund managers. Members of the public can watch the live meeting via webcast on www.sec.gov.

The committee, which provides advice and recommendations to the Commission on rules, regulations, and policy matters relating to small businesses, will continue its exploration of ways to expand early-stage capital raising by focusing on how certain fund managers, including emerging fund managers and diverse fund managers, are accessing capital. Committee members will hear from Professor Sabrina Howell, from the New York University Stern School of Business, who 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. Professor Howell will discuss the advantages and challenges of public advertising for traditionally underrepresented managers.

Staff members from the SEC’s Division of Investment Management will provide a brief overview of the registration framework applicable to private fund advisers and their funds, including those exemptions from the registration requirements of the Investment Advisers Act of 1940 and the Investment Company Act of 1940, which may be relied upon by emerging fund managers.

The committee will discuss the challenges that emerging fund managers report facing when seeking to raise investment funds and will hear from Karen Kerr, PhD, Board Member and Charter Class, Kauffman Fellows and Managing Director, Exposition Ventures, about 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 and consider whether regulatory or other solutions could be undertaken to further support these fund managers and the early-stage companies in which these managers invest.

The full agenda, meeting materials, and information on how to watch the meeting are available on the committee webpage.

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Last Reviewed or Updated: Nov. 5, 2024