

Why the Jobs Act is great for Angel List - arram
http://josephwalla.com/why-the-jobs-act-is-great-for-angel-list-its-not-what-you-think

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DanielRibeiro
Note that Naval, founder of Angel List, was heavily invested in passing the
Jobs Act. He told the whole story on this interview:
[http://www.youtube.com/watch?v=2htl-O1oDcI](http://www.youtube.com/watch?v=2htl-O1oDcI)

Text Summary: [http://pandodaily.com/2012/11/16/pandomonthly-with-naval-
rav...](http://pandodaily.com/2012/11/16/pandomonthly-with-naval-ravikant-
post-event-recap/)

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shawnee_
_Note, you can chose to keep your fundraising private, which allows you do to
verify accreditation the old way. However, it 's now unclear if events like
Demo Day, a post on Facebook or other pitch events would count as 'general
solicitation'. You don't want to run afoul of the SEC._

Having murky guidelines is probably a good thing. The trend in fundraising
really should be headed toward more public, less private. It's worthwhile to
read up on the history of why we have this line between "private, accredited"
investors and general fundraising and the Securities Act of 1933. After
spending a good day - day and a half researching what the new law means for
companies starting to think about looking for Angel and/or VC funding, I wrote
up some findings: [http://ink.hackeress.com/2013/09/what-title-ii-of-jobs-
act-m...](http://ink.hackeress.com/2013/09/what-title-ii-of-jobs-act-means-
for.html)

Like most of the movements of the time (prohibition), the original intent of
the law was noble, but ultimately was misguided.

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dhyasama
SecondMarket also offers an accreditation service:

[https://www.secondmarket.com/education/avp](https://www.secondmarket.com/education/avp)

It's part of their General Solicitation Solution:

[https://www.secondmarket.com/education/landing/general-
solic...](https://www.secondmarket.com/education/landing/general-solicitation-
solution)

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habosa
I interned at SM two summers ago. Getting a reliable accreditation service was
a huge hurdle that they crossed, and it's very valuable. They have a really
interesting product and they were even involved in shaping the JOBS act in the
first place.

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ballard
The whole accreditation thing is an unnecessary barrier-to-entry. I can
understand wanting to keep litigation risks of sore losers at bay (caveat
investor), but I can't support red tape that gets in the way of potential
investors, no matter their balance sheets.

Consider investments in most startups as defacto donations until there is
substantial profit or the big exit check clears &| stock documents are
finalized.

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okawei
Crowdentials offers an accreditation service without using any tax returns.

[http://www.crowdentials.com](http://www.crowdentials.com)

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joshstella
Having just done a round partially made up of Angels, I don't see this as
having a major impact on fundraising which is still predominantly private. I'm
skeptical that we are moving broadly towards public fundraising in Angel kinds
of investments.

