Recent public market events saw retail investors exercise powers that are normally reserved for sophisticated Wall Street banks and hedge funds. Both traditional finance institutions and regulators are reeling after the “public short squeeze” of GameStop and several other companies in Jan 2021 and wondering what, if anything, should be done about it.
Similar concerns are also being voiced about the private markets and nonaccredited investment activity. Regulators are asking the perennial question, “Does the retail investor need more protection or the opposite, democratization?”
Many market segments are attracting interest from retail investors but few are as exciting as the space industry. Space startups are in for what looks like a stellar year and look to benefit from the successes of 2020. To achieve this, they need capital that is only forming in the nascent industry and where traditional venture capital is still scarce. Some companies were counting on raising capital from the public under the U.S. Securities and Exchange Commission’s newly amended Jumpstart Our Business Startups Act.