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A Proposed SEC Rule Is Roiling the Venture Capital World
- helsinkiandrew 4y agohttps://archive.ph/jbO6B https://archive.ph/jbO6B
- toomuchtodo 4y agoProposed rule: https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202210&RIN=3235-AN07 https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=2022... > The change would make it easier to sue investors for negligence, and could make VCs more culpable for failures at the startups they back. The rule, designed to address “lack of transparency, conflicts of interest” and other problems in the private markets, could be particularly impactful in a turbulent market environment. Recent months’ spate of startup scandals includes (but isn’t limited to!) the implosion of the now-disgraced crypto exchange FTX, which drew praise and dollars from some of the top names in venture capital.