Yesterday, the House Financial Services Committee, under the leadership of Chairman French Hill (AR-02), conducted a hearing titled “Beyond Silicon Valley: Expanding Access to Capital Across America.” The session focused on legislative and regulatory strategies to enhance public market appeal, aiming to facilitate capital formation for growth-oriented companies. Members evaluated proposed policies targeting challenges faced by small businesses and entrepreneurs in securing funding.
The committee reviewed several bills aimed at broadening access to capital nationwide. Public feedback on these legislative proposals is invited until March 31, 2025, via email at fsc119@mail.house.gov.
Chairman Hill emphasized the need for inclusive capital markets: “Our capital markets should work for everyone. That means reducing barriers for startups to access funding, incentivizing investment in regional businesses, and reforming outdated regulations that improve access to growth capital to ensure a public offering is a more viable option again.”
Rep. Ann Wagner (MO-02) stated, “Talent and innovation aren’t confined to the coasts, and investment shouldn’t be either. This hearing is about giving hard-working, everyday Americans access to the kinds of high-growth opportunities that for too long have been reserved for the wealthy.”
Rep. William Timmons (SC-04) noted the concentration of venture capital funding in limited states: “While venture capital plays a vital role in fueling innovation and economic growth, the reality is that most VC funding is concentrated in just a few states, leaving many promising entrepreneurs across the country struggling to secure the capital they need to scale.”
On redefining accredited investors, Rep. Bill Huizenga (MI-04) remarked: “According to the SEC, 19% of U.S. households qualify under the definition of an accredited investor in 2022. That’s locking out 81% of our population from ever having the opportunity to invest in those small businesses.”
Addressing the decline in public companies in America, Rep. Frank Lucas (OK-03) said: “When I came to Congress there were over 8,000 public company listings in the United States. Today there are fewer than 4,000. Healthy public markets allow companies to receive lower cost funding while giving investors opportunities to deploy their capital and seek return.”
Witnesses expressed support for committee efforts:
Steve Case from Revolution LLC acknowledged bipartisan backing for entrepreneurship legislation: “I want to start by acknowledging that…legislation…has largely received bipartisan support…Today’s hearing underscores this committee’s commitment…I often say that America was once a startup—and a fragile one at that…”
Bill Newell from Sutro Biopharma highlighted challenges facing biotech firms due to risk aversion among investors: “…raising new funding…has been more challenging as investors have a more risk-off mentality…Private markets play a crucial role…The JOBS Act rightsized regulations…”
