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Divided SEC Boosts Capital-Raising Limits for Private Offerings

Nov. 2, 2020, 4:58 PM

The SEC is allowing startups to secure more money through private offerings without going public, easing some registration exemptions against the wishes of Democrats.

The Securities and Exchange Commission on Monday voted 3-2 to adopt multimillion-dollar increases for certain private placement thresholds and to take other actions to help smaller companies raise capital outside of public markets.

The offering limits within a 12-month period under Regulation A’s Tier 2—one of the SEC’s private investment tiers used to exempt companies from public offering registration—will rise from $50 million to $75 million.

The limit on Rule 504 of Regulation D, which was ...

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