August 14, 2013
I am writing to echo the concerns raised by Angel List in its August 12, 2013 letter to SEC Staff.
I run a small start-up that employs 4 people. We are not yet profitable, and to date have been privately financed by our founders. We will soon seek to raise outside capital from investors.
I can assure you that the process Angel List outlines for how start-ups raise money -- fluidly, without formal legal representation, with very limited business experience and expertise, and without the resources to comply with the strict proposed rules -- is factually accurate.
Raising money for an early stage venture is hard-enough already. The proposed SEC rules would make it virtually impossible. I urge you to amend the rules for the health of the start-up ecosystem and to promote the jobs growth that Congress intended in passing the JOBS Act.