With more unicorns surfacing in the U.S., is shareholding disclosure on the cards for private companies?

Post by Michael Chen, Head, Partnerships

“The SEC has over the past decade made it easier for private companies to raise capital, which largely exempts them from the agency’s oversight.”

“It also could address the regulatory exemptions that underpin the private capital markets, the notice said. Some Democratic policymakers argue that private markets—where technology startups and hedge funds raise money—have grown too large to be off regulators’ radar.”

Shareholding disclosure has (always) been related to publicly-listed companies. Unicorns (private companies – startups – with valuations above USD1 billion) are now more common and some are commanding valuations rivalling those of publicly-listed companies. For example, Bytedance, the startup behind TikTok is valued at USD425 billion and will be the #11 largest U.S. market cap company, bigger than Walmart, Disney, Nike, or MasterCard.

Is there eventually going to be disclosure requirements for these private companies?

 Artius Global Shareholding Disclosure (AGSD) is flexible and can easily be updated with the latest rules.

Adapted from:

SEC picks as corporate regulator a professor who criticized startup ‘unicorns’ – swppr.org

Regulating Unicorns: Disclosure and the New Private Economy” by Jennifer S. Fan (bc.edu)

This website uses cookies to ensure you get the best experience on our website.