SEC Weighs Requiring More Disclosure From Private Startups

Law 360 – In a story about increasing disclosure from private companies, Healthy Markets President & CEO Tyler Gellasch said “We’ve created this enormous regulatory gap between public companies which are expected to disclose a lot — and that’s only going to increase over time — and private companies that are not expected to really disclose anything. Gellasch blamed blowups in private markets — including blood-testing company Theranos Inc. and cryptocurrency exchange FTX — in part on lack of oversight in private markets, where, he argues, valuations are not grounded in reliable information. “When it comes to private companies and private funds, the reality is most investors simply don’t have enough timely information to make a very thoughtful, informed investment decision.” (Full Story).

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