In remarks at SEC Speaks, the U.S. Securities and Exchange Commission’s Director of the Office of the Advocate for Small Business Capital Formation outlined the office’s role in representing small businesses and their investors within the SEC’s rulemaking and policy process, and pointed market participants to SEC educational resources and the office’s 2024 Annual Report. The speech highlighted recent activity since October 2024 including 34 outreach events, dozens of policy meetings, publication of the 2024 Annual Report, development of new educational content, review of proposed bills and amendments affecting small business capital formation, and hosting the 44th Annual SEC Small Business Forum. It also cited selected data points on small business financing needs and market conditions, including that 58% of new businesses started with less than USD 25,000, 41% sought less than USD 50,000 in external financing or credit, and that while 40% seek external financing only 2% receive an equity investment, primarily from owners or friends and family; the remarks also referenced USD 6 billion of pre-seed and seed investment and USD 19 billion of IPO proceeds in the first half of 2024, alongside declining exit values.
U.S. Securities & Exchange Commission 2025-05-20
U.S. Securities and Exchange Commission highlights Small Business Advocacy Office outreach and annual report insights on capital formation
At SEC Speaks, the SEC's Director of the Office of the Advocate for Small Business Capital Formation discussed the office's role in rulemaking and policy, highlighting 34 outreach events, policy meetings, and the 2024 Annual Report. The report includes data on small business financing, noting 58% of new businesses started with less than USD 25,000, USD 6 billion in pre-seed and seed investment, and USD 19 billion in IPO proceeds in early 2024, amid declining exit values.