Changing Dynamics Pre-IPO and Going Public on the Agenda for the SEC’s Small Business Capital Formation Advisory Committee

The Securities and Exchange Commission's Small Business Capital Formation Advisory Committee will meet virtually on Monday, Sept. 27 to explore the changing dynamics for pre-IPO companies raising capital and the pathways those companies take to becoming public. During the morning session, the committee will focus on recent trends in "crossover investors"—such as mutual funds and other investors that traditionally focus on public companies—investing in late-stage, pre-IPO funding rounds. The committee will discuss how these investors are changing the dynamics of pre-IPO capital raising and the effects on timing to go public. During the afternoon session, the committee will explore pathways to joining the public markets, discussing how companies and investors are weighing traditional IPOs, direct listings, and the re-emergence of mergers with special purpose acquisition companies (SPAC).