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Venture firm tries telling others how to invest in private companies

19
Aug
2014

By Sarah McBride SAN FRANCISCO (Reuters) – A Washington, D.C.-area company that invests in startup companies is moving into a new line of business: advising others on how they too can invest in startups. Disruption Corp., which runs the Crystal Tech Fund in Crystal City, Virginia, said Tuesday that regulators had licensed it to provide investment guidance. It is licensed by the state of Virginia and appears on the Securities and Exchange Commission’s list of registered advisors. The move is an unusual one, say securities lawyers, as most venture funds like the relative lack of regulation they are entitled to under securities law.

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