Many venture capital investors I've spoken with are pleased with the news that the Securities and Exchange Commission may be loosening rules on capital raising by private companies.
But they should be careful. This change might wind up threatening the business model of venture capital firms.
The SEC is reportedly considering raising the 500-shareholder limit on private companies, which would mean that companies could allow more investors to contribute capital without being forced to adopt the burdensome regulatory and disclosure regime that applies to public companies.
To read the full, original article click on this link: Will New Private Capital Rules Hurt Venture Capital? - CNBC
Author: John Carney
