Later-Stage Companies Attract Bulk of Venture Capital Funds

According to this article in Inc., later-stage companies are attracting the bulk of venture capital funding. A group of officials from the Department of Commerce and the European Commission finds this problematic because it indicates that early-stage companies are not receiving the necessary capital to move innovations from the drawing board to the marketplace. The group calls for government investment to fill the funding gap. I address this funding gap issue in an article published last year (32 Fla. St. U. L. Rev. 1). My proposed remedy though is different. I call for the SEC to relax the ban on general solicitation and advertising for Regulation D offerings so that it is less difficult for early-stage companies to attract angel investors, the primary source of equity capital for these companies.  [Bill Sjostrom]