A House of Representatives panel heard testimony on a proposal, backed by outgoing Speaker Nancy Pelosi (D., Calif.), aimed at allowing smaller companies to go public with fewer costs.
Federal law allows companies to conduct securities offerings of $5 million or less without filing a full registration statement with the Securities and Exchange Commission. The proposal, which hasn’t been introduced yet as legislation, would raise the dollar limit under the exemption, known as Regulation A, to $30 million.
The venture capital industry is pushing for the change, arguing that it will help smaller companies access the public markets and be a boon to job creation. The venture industry argues the current exemption isn’t useful to small companies because the current dollar limit is too low to justify the costs of going public.
To read the full, original article click on this link: House Panel Considers Easing Rules On Small Company IPOs - Venture Capital Dispatch - WSJ
Author: Jessica Holzer
