Core Summit Series: The Rise

Overview

• Welcome to the Core Summit series titled "The Rise".
• Focus on private capital markets and insights from thought leaders.
• Thanks to sponsors: RaceX, CoreChain, Invetomy, GCN.

Key Points

• Importance of Education:

  • Education in private capital markets is vital for compliance and understanding regulations.

• The JOBS Act:

  • Introduced to improve equity capital raising for entrepreneurs.
  • Comprises seven bills, facilitating crowdfunding and other investment opportunities.
  • Aimed to rejuvenate IPO markets and provide better access to capital for smaller companies.

David Weill's Keynote

• Former Vice Chairman of NASDAQ, known as the "father of the JOBS Act."
• Changes in market structure require extensive education and advocacy.
• JOBS Act has led to notable successes in capital access.
• Notable achievements include an increase in biotechnology IPOs after the JOBS Act.

Achievements Post-JOBS Act:

• Establishment of 88 active Regulation Crowdfunding portals.
• Enabled major funding for companies like Moderna, showcasing the act's impact on innovation and public health.

Challenges in the Private Capital Markets

• IPO Market Decline:

  • Significant drop in small IPOs due to regulatory changes affecting market structure.
  • From 9,000 to 5,000 publicly listed companies.

• Importance of Compliance:

  • Navigating regulatory landscapes requires collaboration among brokers, lawyers, and compliance professionals.
  • Risks of poorly structured agreements and the need for clear communication.

Panel Discussion

Introductions

• Mitch Avnet: Founder of Compliance Risk Concepts, focusing on broker-dealer registrations and compliance.
• Patrick Costello: Capital markets attorney, emphasizes the importance of planning and proper documentation for startups.

Collaboration in the Ecosystem

• There is a need for improved communication between brokers, lawyers, and compliance professionals.
• Importance of thorough due diligence and a collaborative approach to compliance.

Regulatory Environment

• FINRA and SEC are increasingly active in examinations.
• Emphasis on following guidance and regulations, and the need for operational best practices.

Conclusion

• Future of Private Capital Markets:

  • Continued evolution with technology integration and regulatory compliance.
  • Importance of building trust and relationships among industry participants.

• Key Takeaway:

  • Collaboration among all stakeholders is essential for navigating the private capital market landscape effectively.
  • Active engagement with regulators and a focus on compliance will create opportunities and enhance market stability.