April 27, 2012
In compare with current regulations on accredited investors: besides individuals meeting certain income standards, there are institutions listed as accredited investors. They should be included in the Title III Crowdfunding as a class of Preferred Portal Operators since they have the ability to carry out due diligence activity and monitoring the small corporations' daily operations and sit on their board, in essense, doing what the VC industry is doing on their portfolio companies.
Besides institutions, SEC should include accredited individualsalso. In this way, the non-accredited "crowd" investors can follow the Preferred Portal Operator's published internet information (a regulation requirement) and make an intelligent investment decision accordingly.
Sincerely yours,
H. Bruce Li, Ph.D. P.E.