SEC Schedules Public Meeting to Examine Finder Regulations for Small Business Capital Formation

USA: SEC Small Business Advisory Committee to Discuss Finder Regulations

Meeting Details

A public forum on capital formation will be held at the Securities and Exchange Commission headquarters in Washington, D.C., on Tuesday, Feb. 24, 2026, beginning at 10 a.m. ET. The session will also be streamed live on the SEC website, allowing remote participation. The gathering is organized by the Small Business Capital Formation Advisory Committee, which advises the agency on policies affecting emerging companies.

Focus on Finder Regulation

The agenda centers on potential regulatory improvements for “finders,” individuals or entities that assist companies in raising capital from accredited investors in private markets. Committee members will explore how existing rules impact these intermediaries and consider adjustments to promote transparency and investor protection. Steven Jafarzadeh, chief compliance officer and partner at Stonehaven, is slated to provide a perspective on the current regulatory framework.

Insights from SEC Staff

Staff from the SEC’s Office of the Advocate for Small Business Capital Formation will present an overview of its 2025 Staff Report, which compiles extensive data on capital‑raising activity across startups and small‑cap firms. The briefing aims to contextualize the role of finders within broader market trends and to identify areas where policy could better support small businesses.

Private Secondary Market Overview

The afternoon session will examine the growth of the private secondary market, a venue that offers liquidity for investors and employees holding private securities. Discussion will address how continuation funds, special purpose vehicles, and private tender offers have become common mechanisms for portfolio rebalancing. Participants will assess the market’s influence on venture‑capital dynamics and overall liquidity provision.

Industry Perspectives

Experts from the investment community will share their analyses. Emily Zheng, senior research analyst at Pitchbook, will discuss deal‑flow drivers and emerging trends. Nigel Dawn, managing director at Evercore, will evaluate strategic considerations for secondary transactions, while William Duval, special counsel at Cooley LLP, will address legal implications for market participants.

Implications for Small Businesses

Committee deliberations are expected to yield recommendations that could shape future SEC rules affecting small‑business capital formation. By refining finder regulations and clarifying secondary market practices, the agency aims to balance efficient capital access with investor safeguards. The outcomes may influence how emerging companies navigate private fundraising and liquidity options.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.