VC Firm Accel Files With SEC to Tap Thriving Secondary Market

Accel is the latest venture capital firm to consent to heightened regulation with the US Securities and Exchange Commission, a tradeoff that allows it to buy more shares of non-public companies that have been changing hands at steep discounts on private markets.

The Palo Alto, California-based firm registeredwith the SEC as an investment adviser called Accel Management Co. The firm, which manages about $30 billion, will now be subject to increased disclosure and compliance requirements and regular SEC examinations.

Venture funds are largely exempt from such oversight as long as they observe restrictions on their investments and their use ...