Overwrought headline? Hardly.
New SEC regs will destroy your ability to raise capital.
In a nutshell, new SEC rules will REQUIRE entrepreneurs to register with the SEC BEFORE approaching investors. Worse yet, Angels will no longer be able to “self certify” as accredited investors–we will have to show W2’s or proof of our net worth, and most of us will never be willing to share such personal information.
And did I mention that pitch events will become a form of illegal solicitation?
Here is the Angel Capital Association’s take: SEC regs.
Please–call your Congressman, write your Senator, and post a comment at the SEC’s website.
Why is all this happening? Because our Nanny State thinks Angel Investors need “protection”. I normally try to keep my politics out of my blog, but this is ridiculous. Startups create most of the jobs in this country, and unemployment is intolerably high. So the solution is to cripple capital formation for startups?
This Administration and the SEC have lost their minds. Do everything you can. Your funding depends on it.