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Kauffman's Litan: Proposed 'Protections' for Angel Investors are Unnecessary
- skmurphy 17y agoKey points from article: 1. Under existing law, startup companies can raise money easily and quickly from "accredited investors." There is no need for the companies or the investors to gain approval from any state or regulatory official. 2. This would change if Section 926 of the Dodd bill is included in any final reform legislation. That section would require, for the first time, companies seeking angel investment to make a filing with the Securities and Exchange Commission, which would have 120 days to review it. This would both raise the cost of seeking angels and delay the ability of companies to benefit from their funding. 3. The negative impact of the SEC filing requirement would be aggravated by the proposed doubling of the net worth or income thresholds required for investors to be "accredited."
- billclerico 17y agothis is really bad.