Good news – yesterday the Financial Services Committee in the House of Representatives released a Venture Exchange bill entitled the “Main Street Growth Act”
The Bill is to “amend the Securities Exchange Act of 1934 to allow for the creation of venture exchanges to promote liquidity of venture securities…
This is yet another step towards reforming our capital markets. The first step was to enable access, and was addressed by Titles II, III & IV of the JOBS Act. This is now accelerating businesses ability to get financed by leveraging the internet and online funding platforms (who are FundAmerica’s customers). The next thing we need from our lawmakers is better ability to create liquidity and secondary markets, which is exactly what this Bill aims to help.
We (FundAmerica) are already building our next generation of services to enable secondary markets. This includes a transfer agent (FundAmerica Stock Transfer) so businesses can economically manage large investor lists and so brokers and venture exchanges can ensure “good deliver” (in other words, that someone really does own the securities they are trying to sell), carrying accounts on statement, and providing various other back-office services this market will require.
The CFIRA Board (which I am a member of) is preparing to engage with lawmakers and regulators regarding this Bill. If you would like to provide comments and/or ask questions please let me know and I’ll include them in our discussions.