Have you seen or heard about Senator Christopher Dodd’s Financial Reform Bill and the provisions regarding angel funding? There is an excellent article in Business Week about the provision that would increase the requirements of an individual to qualify as an accredited investor. It would take out an estimated 40% of people who qualify today from being able to make a sophisticated investment in a promising new technology-based business.
Furthermore the legislation would allow states for the first time to set their own regulations on security laws. What a nightmare that would be given that most innovative, high-growth, high-need start-ups raise money from people in more than one state. Also it would add yet another bit of red tape for the entrepreneur to have to learn about and maneuver through. Don’t we make it hard enough for entrepreneurs to work through all the rules and regulations already at the start-up phase? How difficult do we want to make it to start a business? Come on, these are the very people we’ve agreed will drive new employment and diversify our economy.
Write your senators and ask them not to support this portion of Senator Dodd’s bill.
