DISQUS

Franko · 6 months ago

So What? How wil this effect business in the Valley?

jsh2134 · 6 months ago

yeah what is lost by registration? or maybe better yet, what is gained by registration?

Anthony Ha · 6 months ago

Well when I've spoken to the NVCA they've been vague about the exact impact, in part because there aren't many details yet.

Presumably, the risk is that this would increase bureaucracy and costs, which might eventually mean less funding; the benefit would be giving regulatory agencies more information about the industry, and who is put at risk by the industry's investments.

Les Grossman · 6 months ago

It would significantly increase costs and lower returns for VCs. The proposed overhaul of the financial system is going to destroy all that is good about America.

georgiatanasov · 6 months ago

NVCA is a lobbyist industry group and no less than this is to be expected of them. The group's press release states, in the same breath, that regulation is unnecessary for the de facto insignificant VC industry and that VC-backed firms were responsible for 12.1 million jobs and $2.9 trillion in revenue. Making two mutually exclusive points in one text only raises more question than it answers.

In my opinion, registration costs are not going to be too high. This is not SOX, where the costs where quite high at first, before the regulation was scaled back a little in light of new best practices.
Mr. Ha points out that 'bureaucracy costs' (interesting cost item) will lead to less funding. However, he forgets that increased assurance resulting from these registrations might well facilitate fund-raising and, in fact, increase funding.
The skeptics' point is not to be dismissed and only time will show the effects of this government plan.