August 20, 2013
Founders of startups go through significant stress, going into debt, paying their employees and sometimes struggling to make rent. The filing requirements proposed would make raising money very difficult and create legal expenses for startups that would make it difficult for them to raise money. With more startups disuaded, or struggling to meet these requirements, these regulations would only serve to hurt the economy by leading to less money being raised and less people being hired. The punishments are too harsh and would result in many startups being put out of business. Reporting should be done through 3rd party platforms that help startups raise money under the JOBS Act.