Securities and Exchange Commission Government-Business Forum on Small Business Capital Formation

Reg D: Declining usage of 506(c) but new possibilities Percentage of companies utilizing 506(c) on SeedInvest has declined precipitously since 2013. Companies which have sizeable, engaged customer bases have benefited significantly from utilizing 506(c). However, for other companies, the friction of accreditation verifications has historically outweighed the benefits. We expect Reg CF/Reg D "side-by-side rounds" to lead to a revival of 506(c) rounds. % Of Seedinvest Issuers Utilizing 506(c) vs. 506(b) 85% 2013 Note: figures above include all issuers which have launched campaigns under Regulation D on SeedInvest since September 23, 2013. 64% 2014 36% 2015 16% 2016 5

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