David Lynn spoke to Law360 about how the U.S. Securities and Exchange Commission (SEC) could compel more large private companies to comply with public reporting requirements in order to bolster transparency, potentially inviting resistance from unicorns objecting to greater oversight.

According to David, if rules around unicorns (private startups valued at $1 billion or more) become more stringent, then a "pretty significant number of companies would have to rethink their approach going forward."

"It changes the landscape of how they finance themselves and how they would structure their ownership," David said.

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Originally published by Law360.

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