Expanding Retail Access to Private Markets
Expanding Retail Investor Access to Private Markets
The SEC's Focus on Retail Investor Access to Private Companies
"When retail investors participate in our markets, how broad a spectrum of investments do
they have? I think that spectrum has been getting relatively smaller. Because we have fewer
public companies, companies are waiting much longer in their life cycle to go public, which
by definition means that retail investors have less access to the market as a whole. And I
fear, less access to companies that are well-established, but still growing."
- Jay Clayton, Chairman of the SEC
Billions
$500
$400
$300
$200
$100
$0
Number and Total Value of Private U.S. Startup
Companies Valued at $1B or More
2013
||||
H
2016
2014
2015
2017
Apr-18
Total Value of US Startup Companies Valued at $1B or More
Number of Private U.S. Startup Companies Valued at $1B or More
120
100
80
60
40
20
0
As of April 2018 there were 103 privately held
U.S. start-ups with valuations of over $1 billion
and a total value of $385 billion
Less access to private companies means retail
investors are missing out on the opportunity for
excess or uncorrelated returns
Source: Dow Jones Venture Source and the Wall Street Journal, https://www.wsj.com/graphics/billion-dollar-club/, as of April 2018.
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