New Registration Status at Foundry Group

We have some entertaining news to share with you today. We have recently registered with the SEC and are now considered Registered Investment Advisors. Did we do this so that we can have cooler business cards? No. Did we do this because our back office was lacking in purpose? Heck no.

We had to, per the SEC rules. And the reason you ask? Well, we can’t tell you that or we could possibly break some other SEC rules. So for now, just accept that your friendly neighborhood venture capital firm is now subject to a lot of new and stimulating paperwork.

Why are we even bothering telling you this? Because it will affect what we can say on the Foundry Group blog and personal blogs that we write. We’ll have to be careful with statements that we make about companies we invest in. We’ll also be cautious in what we write about our funds or the industry in general. According to the SEC rules, we can no longer write anything that “promotes” our funds. While we’d argue that we never try to promote our firm, but just write anything that comes to mind and try to have fun doing it, with our new registration status comes new responsibilities.

This will be a learning process for us and our goal is to bring you content that is still 100% transparent. Please be patient with us if there are hiccups along the way, or perhaps even questions that we can’t legally answer in the comment sections anymore.

And as always – thank you all for the support. We love what we do and the community, and our interaction with you through our blogs, is a big reason why. And, don’t worry, there will be a third VC video from us – someday.

  • look at you with the cryptic

    • Learned new skill, have I.

      • more seriously – is this in response to a new industry-wide req/reg or is it unique to FG?

        • It is not a new reg, nor is it unique to FG. It is a new requirement on our part to comply with the particular reg.

  • mbyrne

    The fact that you had to write this, and that I read it, reinforces my current belief that government ruins everything.

  • williamhertling

    Whatever happens, don’t invest in any ice cream companies, or you won’t be able to talk about eating chocolate ice cream with your dad anymore.

  • Tabitha Farrar

    Gosh. How boring rules are. You’ll have to speak in code.

    Don’t invest in any patterned shirt companies or you’ll have to start wearing boring shirts too.

  • And what about the FG music clips? Does that mean no more songs? Kind of a promotion 😉
    We’re all waiting for the 2016 single release!

  • Does this relate to the crowd funding activities, like the AngelList syndicates? It would be interesting to learn about the genesis of these activities, as many of us probably have similar exposures.

    Btw, I used to run equity capital markets at Bear Stearns and INGBarings, if you need some help managing an equities distribution and liquidity platform,

  • Can you still write about books or a good meal or just life in general? That’s what I like the most.

  • James Mitchell

    “And the reason you ask? Well, we can’t tell you that or we could possibly break some other SEC rules.”

    Total nonsense, of course you can disclose why. In general, the U.S. legal/regulatory system encourages full disclosure. The only obvious exceptions are disclosure of grand jury testimony and proceedings before the Foreign Intelligence Security Court.

    The odds are 99 percent that it is because FG’s assets under management now exceeds a certain threshold.

  • Keep notes of what you really want to say and publish a memoir later on for the timeless bits 🙂

  • The SEC is pretty worthless regulating the stuff that really damages people. Ask Mark Cuban. I cannot believe your fund is put into the category of RIA. I know you probably can’t answer this, but I wonder if Foundry and other VC funds have to comply with the new Department of Labor edict on fiduciary responsibility regarding advice on investments. Why is the DoL writing rules on investments? That’s a question we all ought to be probing, deeply.

  • TeddyBeingTeddy

    Well…if it doesn’t work out in venture capital, now you can provide 401K investment advice to high net worth individuals, for a small fee