The Securities and Exchange Commission, Small Business Capital Formation Advisory Committee (SBCFAC) has scheduled its next meeting to discuss two key topics: Finders and secondary trading in private securities.
Finders has been a long-time issue regarding private securities, specifically early-stage, and the SEC has discussed addressing the challenges for years. In effect, if you introduce an investor to a private company and take compensation, you may be in breach of securities law. If you do not have a wealthy network or do not live in Silicon Valley, it can be hard to raise private funds. By creating new rules for Finders, the Commission could enable more firms to meet investors.
Regarding private securities trading, the SBCFAC says it will “begin exploring” the private secondary market. Providing liquidity for private firms beyond an IPO or an M&A event is good for investors. Yet challenges remain. Some of which can be easily addressed.
The Committee will discuss how to support liquidity needs and investor demand, and its impact on the venture sector. Secondary transactions are also an important aspect of the securities crowdfunding marketplace under the full stack of online capital formation exemptions.
The SBCFAC meeting will take place at SEC Headquarters in Washington, D.C., on Tuesday, Feb. 24, 2026, at 10 a.m. ET. It will also be live-streamed on the SEC website.
The complete agenda is available below.
SBCFAC AGENDA
| 10:00 | Call to Order; Introductory Remarks by Commissioners |
| 10:20 | Deep Dive on “Finders” Continued
In furtherance of the Committee’s discussion on July 22, 2025, the Committee will continue its exploration of issues surrounding “finders.” As part of this discussion, the Committee will deliberate on potential regulatory improvements to the framework that could permit certain “finders” to engage in additional capital-raising activities. Speaker: • Steven Jafarzadeh, Chief Compliance Officer and Partner, Stonehaven |
| 12:00 | Lunch |
| 1:00 |
Update from the SEC’s Office of the Advocate for Small Business Capital Formation
The SEC’s Office of the Advocate for Small Business Capital Formation will provide an overview of the Office’s FY2025 Staff Report, which includes in-depth data on the state of capital raising activity from startup to small cap. |
| 1:15 | Shedding Light on the Private Secondary Market
As the IPO and M&A markets have shifted, the private secondary market has grown to fill liquidity needs and meet investor demand. Continuation funds are becoming more prevalent, and the rise of special purpose vehicles allow LPs, VCs, and other strategic investors to find exits and rebalance their portfolios through the private markets. Additionally, startups are using private tender offers to attract/retain talent. Committee members will hear from experts and industry participants in this space to better understand the data, deal flow drivers, trends, opportunities, and challenges that stem from the growth and normalization of private secondary transactions. Speakers: • Emily Zheng, Senior Research Analyst, Venture Capital, Pitchbook |
| 3:30 | Wrap-up and Adjournment |