The House Financial Services Committee, under the leadership of Chairman French Hill from Arkansas’s 2nd District, is conducting a hearing to explore how capital markets can drive economic growth by supporting businesses at various stages and expanding investment opportunities for retail investors.
In his prepared opening remarks, Chairman Hill stated, “Good morning. I want to welcome our Members to today’s hearing on expanding access to capital, and I look forward to our witnesses’ testimony.”
Hill reflected on his financial career before Congress in Arkansas and Texas, highlighting the entrepreneurial talent present outside traditional venture hubs like New York or San Francisco. He noted that many promising startups lack access to local advice and capital necessary for growth.
“Right now, virtually all venture funding pours into just a few coastal cities,” he said. This concentration leaves innovators in other regions overlooked and underfunded. Hill emphasized that “talent and ambition don’t stop at state borders,” advocating for investments beyond traditional hubs.
He cited Little Rock-based Apptegy as an example of innovation born outside major financial centers. The company started from scratch and grew by providing communication tools to schools nationwide.
Hill expressed concern over the decline in the number of public companies in the U.S., which has dropped from over 7,000 thirty years ago to fewer than 4,000 today. He attributed this decline partly to threatened litigation, excessive costs, and regulatory burdens making it harder for small businesses to go public.
“Our capital markets should work for everyone,” Hill asserted. He advocated reducing barriers for startups seeking funding, incentivizing regional business investments, and reforming outdated regulations.
By supporting local incubators and streamlining rules, Hill believes more companies can scale successfully and ultimately go public. Expanding investment access is crucial so Americans can partake in economic growth.
“For too long,” he said, “investment opportunities—particularly in private markets—have been reserved for a select few.” Broadening access would create more avenues for wealth creation.
Hill concluded that modernizing securities laws could help founders across backgrounds build successful American companies. “The policies we are discussing today will not only expand access to capital—they will strengthen our economy and create lasting opportunities for millions of Americans.”
