Hedge fund advertisingBy http://profile.typepad.com/1237764140s22740 // July 17, 2013 in General Solicitation, Reg D
One thing were going to have to get a handle on, out here on the West Coast, is how to separate our critique of the SEC proposed rules to overhaul Form D, and the SEC proposed new information requirements for hedge fund advertising.
It shouldn't be difficult to do this, but it needs sorting.
Here, a week after the big SEC open meeting (click here to run a rebroadcast of the live blogging Joe Wallin and I did during the meeting webcast), we are still thinking through the implications of how the proposed rules will impact startups, angels and venture capitalists. But it probably make sense to get educated enough on the hedge fund advertising critique that we can start to make some distinctions between Reg D filing requirements for funds, and proposed filing requirements for individual issuers.
Check out this fascinating four or five minute video from Bloomberg. A colleague of a friend sent me a link, and it's fascinating.
The upshot: a marketing professor says hedge fund advertising will tend to reduce firm margins.
Can you imagine venture capital firms advertising?
Frankly, I can; even on traditional media.
Imagine the following kind of copy being read on a regional NPR station:
"Support for this [civic/economic] program is brought to you by Acme Venture Partners, the leading enabler for Springfield Vally innovation for three generations, now accepting qualified limited partners for its new clean energy fund. Make tomorrow happen; invest today. AcmeVenturePartners.vc."