Last week, the SEC held its annual Government-Business Forum, which included a number of presentations on exempt offering alternatives. Anya Coverman, Deputy Director of Policy of NASAA, presented on intrastate crowdfunding. The attached powerpoint provides a useful overview of the intrastate crowdfunding exemptions as of this month. See here: https://www.sec.gov/info/smallbus/sbforum119015-coverman-presentation.pdf.
Kevin Laws of AngelList provided some metrics on funds raised online in the last two years, which totaled $205 million. As noted in his powerpoint only 3% have involved Rule 506(c). Mr. Laws noted that there is a trend toward deals led by a credible investor, or “syndicate” deals. See his powerpoint here: https://www.sec.gov/info/smallbus/sbforum119015-laws-presentation.pdf.
William Waddill, SVP and CFO, Calithera Biosciences, speaking on behalf of Bio, the Biotechnology Industry Organization, raised a number of issues affecting smaller reporting companies (SRCs). Mr. Waddill noted that “a slight change in the percentage of market value captured by the SRC/non-accelerated filer definition could support company growth and capital formation for a significant number of small businesses.” There has been relatively little reform of the rules and regulations applicable to SRCs and the Forum helped identify a number of important areas of attention. See Mr. Waddill’s presentation here: https://www.sec.gov/info/smallbus/sbforum119015-waddill-presentation.pdf.