The Securities and Exchange Commission (SEC) Small Business Capital Formation Advisory Committee (SBCFAC) has released the agenda for its second meeting of 2023. The meeting will consist of three separate panels, covering various topics relevant to small businesses and investors.
The first panel will provide an overview of the operations of the SEC’s Division of Corporate Finance (CorpFin). This session aims to educate participants on the role of CorpFin within the SEC’s mission and highlight current rulemaking initiatives that pertain to small businesses and their investors.
The second panel will focus on venture capital (VC) funds that support early-stage private firms. In particular, the discussion will address the lack of diversity in these funds, specifically at the “check-writing stage.” The SBCFAC aims to explore ways to encourage more investment in diverse founders and smaller, emerging fund managers.
The final panel will center around alternative funding options for small businesses. It acknowledges that not all small companies fit the growth curve model typically sought by VC funds and may struggle to access traditional forms of financing. The Committee will discuss alternative pathways for small businesses to acquire patient capital and support their growth outside of traditional equity investments.
It should be noted that there is no mention of securities crowdfunding options on the agenda.
The previous iteration of the SBCFAC provided recommendations to the SEC, but few of these recommendations were implemented. In a letter, the Committee expressed its frustration with the lack of progress. Nonetheless, the upcoming meeting on September 19, 2023, from 10 AM to 3 PM, offers an opportunity to address these issues.
The meeting will be livestreamed on the SEC’s website to ensure transparency and accessibility for interested parties.
Below is the complete agenda for the SBCFAC meeting:
10:00 – Call to Order; Introductory Remarks by Commissioners
10:15 – Remarks from Erik Gerding, Director of the SEC’s Division of Corporation Finance
10:30 – Panel Discussion: Who is investing in the funds that support early-stage companies, and are there ways to encourage more investment in those companies? Speaker: Kwesi Quaye, Partner, Fairview Capital Partners, Inc
12:15 – Lunch Break
1:00 – Panel Discussion: Alternative Funding Options for Small Businesses. Speaker: Karl Fooks, Outreach Manager, Office of Domestic Finance, U.S. Department of the Treasury
3:00 – Wrap-up and Adjournment
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