

Kauffman's Litan: Proposed 'Protections' for Angel Investors are Unnecessary - skmurphy
http://www.huffingtonpost.com/robert-e-litan/proposed-protections-for_b_511284.html

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skmurphy
Key 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."

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billclerico
this is really bad.

