The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee (SBCFAC) is set to convene on Monday, May 6, 2024, to discuss key topics in small business financing, including the state of Regulation Crowdfunding (Reg CF) and trends in angel investing.
The meeting, accessible to the public through a live webcast on the SEC’s official website, aims to evaluate and enhance mechanisms of capital formation for emerging companies.
The session will open with an in-depth look at Reg CF, an initiative that has been pivotal in enabling small businesses to raise early-stage capital through crowdfunding.
The morning discussions will assess the successes of Reg CF, pinpoint existing challenges, and debate potential regulatory adjustments that could make the exemption more effective.
Special attention will be given to the participation of underrepresented groups, such as women and minorities, in crowdfunding.
Dr. Melody Chang, Assistant Professor of Management & Organization at USC Marshall School of Business, will present her findings from a recent academic study titled “Women and Minority-Owned Businesses in Regulation Crowdfunding,” which explores outcomes for these groups under Reg CF.
Further, the committee will explore the current landscape of angel investing, which has experienced a slowdown over the past year. This segment of the meeting will delve into how current market dynamics are affecting angel investors and the startups they traditionally fund.
The discussion will include personal anecdotes from committee members about their experiences in the field, perspectives on investment risks, and strategies to potentially boost angel investment activity.
In the afternoon, Valerie Szczepanik, Director of the SEC’s Office of Strategic Hub for Innovation and Financial Technology (FinHub), will outline the mission of FinHub and provide an update on the regulatory environment surrounding cryptocurrency and token offerings, shedding light on another crucial aspect of modern capital raising.
The event will be live-streamed on the SEC’s website and open to the public.
The agenda is below.
Agenda – Meeting of SEC Small Business Capital Formation Advisory Committee
Date: Monday, May 6, 2024
Time: 10:00 a.m. – 3:00 p.m. (ET)
10:00 Call to Order; Introductory Remarks by Commissioners
10:15 Regulation Crowdfunding
Continuing the exploration of ways to expand access to early-stage capital raising, the Committee will discuss Regulation Crowdfunding (Reg CF), including the current regulatory framework, successes to-date, challenges, and whether there are potential changes to Reg CF that could improve the exemption. To facilitate the discussion, SEC staff will share background information on Reg CF.
Speaker:
- Melody Chang, PhD, Assistant Professor of Management & Organization at USC Marshall School of Business, University of Southern California
- Dr. Chang is the author of a forthcoming independent academic report, “Women and Minority-Owned Businesses in Regulation Crowdfunding,” on the experiences and outcomes of women and racial minority business owners who participated in Reg CF.
12:00 Lunch Break
1:15 Remarks from Valerie Szczepanik, Director of the SEC’s Office of Strategic Hub for Innovation and Financial Technology (FinHub)
The SEC’s FinHub will provide an overview of the office’s mission and a brief synopsis of the regulatory landscape concerning cryptocurrency and token offerings, including the current market landscape for token offerings.
1:30 Angel Investors: Activity and Trends
Angel investors play a critical role for early-stage founders, yet angel investments have slowed over the past year. Members will share their experiences on how capital raising trends and the current market are affecting angel investors, angel funds, and the companies they support. As part of this discussion, the Committee will explore how angel investors make decisions, their views on investment risk, and consider whether there are ways to encourage more angel investment activity.
3:00 Wrap-up and Adjournment
