October 1, 2013
I am a small businessman in real estate development and have raised money through six Reg D offerings.
If what I read in today's Wall Street Journal ("A Red Tape Turnoff for Startups") is true, and the new law requires Accredited Investors to disclose their tax returns or bank statements to a deal maker, then the offering that I am contemplating for this fall will never get off the ground. This would have been a $10 million investment, creating at least 20 new jobs.
To turn it around, if I were approached and asked to invest in a partnership, and I liked the deal -- but before I could invest I would have to disclose my tax returns -- I would walk away.
If Gordon Crovitz of the Journal has this right, and if the rest of the law is similar to the Accredited Investors provision, then the so-called JOBS Act is anything but.
Please count my objections as VEHEMENT!
Raymond E. Clark