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Entrepreneurs, Angel Investors: Beware!
by Guest Contributor on April 2, 2010
(This guest post was written by Barry Hannan, start-up enthusiast)
Senator Dodd’s financial reform bill, which was created to impose heavier regulations on big banks and Wall Street, has now attached language that would bring entrepreneurism, innovation, and angel investing to a screeching halt.
For almost 2 decades Regulation D (Rule 506) has been the most effective and reliable avenue for start-ups to seek and acquire angel financing. The bill that has been presented before legislation will give the SEC power to delay or hold up funding based on their decision (if they get to it) before sending down to the state securities commissions, along with increasing financial expectations on “accredited investors”.
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