August 13, 2013
My name is Andrew Travis, and I am the CEO of a very small technology start-up in San Francisco.
When I first heard about the SEC allowing more public fundraising, I was extremely happy. The information that followed however, was troubling.
Startups need to be able to have informal conversations with investors without filing paperwork every time. And paperwork that is required needs to be easy to file via a public API so startup resources like AngelList can integrate seamlessly.
Entrepreneurs don't generally have the knowledge of complicated SEC regulations until they can afford to hire attorneys to tell them. By enforcing harsh no-fundraising penalties for non-compliance you kill their chances of success.
I hope the SEC reconsiders their position on this issue and changes the regulations to better fit the needs of entrepreneurs and startups.