I submitted this comment to the Securities & Exchange Commission after seeing this: Is The SEC Going To Significantly Raise The Accredited Investor Thresholds?
Our economy is in the tank. People need to create jobs. And while some banks are lending, most smaller entrepreneurial business do not and often will not qualify for bank loans.
Enter the individual “angel” investor, sometimes a dentist, often a successful entrepreneur. The good ones don’t just give you cash: they give you advice, they give you knowledge. This is what American entrepreneurs need––and they are what America needs.
Entrepreneurs and the companies they create will be what save these United States of America. And while we are a scrappy, resourceful bunch, we need access to capital to get started. And when we’re tiny and our business model is unclear and our prospects of success are the most uncertain, individual investors willing to make a bet on our success are how we survive.
The harder you make it for rich or even semi-rich guys to invest because of regulations, the less investors there will be––and fewer companies will survive or get started in the first place. Fewer companies means fewer jobs. And no one wants that.
So please, don’t make it harder for rich guys to invest in small, dinky companies like mine. American needs us, and we need them.
This is the time for public comment. In theory, they’re listening. Now’s our time to speak up. Do it here.
I have been following this topic very closely for the last year as it impacts my start-up a great deal. I have been working over the last year to put a platform in place to help companies get funded online through Reg D offerings while creating a peer to peer aspect to it. While Reg D 504 offerings could still survive the 506 where 1 Million + capital raises would be much more difficult. I appreciate you making this post to add visibility to the issue.
s/American needs/Americans need/
How about talking to your elected representatives – who voted (or didn’t vote) for the initial legislation which created this issue in the first place. To paraphrase William C., “We can’t assume the the politicians understand how startups get off the ground”.
You can plead with unelected bureacrats or you can use your vote to elect people who agree with your view of enterpreneurs and don’t give this type of unaccountable power to bureaucrats.
I second Joe! We can’t assume the SEC understands how startups get off the ground. Your letter fills them in! Nicely done.
Great comment letter. Thank you for submitting it. We need to make it easier for startups to raise money. Not harder. Much easier, in fact. Thank you again for submitting this.