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February 22, 2021 | Tom Ballard

Rockridge Venture Law provides analysis of new SEC proposed solution for underrepresented groups or underdeveloped regions

Entrepreneurs from underrepresented groups or located in regions with underdeveloped investor networks often lack access to private capital. In turn, these entrepreneurs rely on “finders” within their networks to make introductions to investors. However, the Securities and Exchange Commission’s (SEC) “broker-dealer” regulations have generally made this a “no-no,” especially when transaction-based compensation is involved (i.e., a finder’s fee).

Recently, the SEC proposed relief for certain finders to address this gap in the market. Rockridge Venture Law Attorney Shayn Fernandez takes a look at what this proposal could mean for early-stage investors and companies in this recent analysis from the law firm. We thought it might be of interest to those in either underrepresented groups or underdeveloped regions.

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