Some interesting legal reads for the week of March 16, 2015:
- A statement from the SEC’s Division of Corporation Finance about its policy for waivers of the “bad actor” rules for Regulations D and A.
- A speech from the SEC’s Investor Advocate, Rick A. Fleming (this is a new position), advocating for “layered” disclosure, i.e., using tabs and links like a website, rather than an intimidating 200-page document.
- This Washington Post piece highlights a study noting that most successful startups don’t require or obtain angel or venture capital financing. Fair point, but this study presumably included companies in all industries. For certain industries requiring (in many cases) huge capital investment before profits can be made (e.g., technology, life sciences), you’re more likely to need this kind of institutional investment.