April 14, 2012
We absolutely need crowd sourcing options for funding beyond the VC marketplace for seed capital up to $1M. However if you make the rules too onerous - then it will be cost prohibitive for seed capital fund raising and you will defeat the purpose and intent of the bill. SEC - please do not make it so 10% of all our fund raising just becomes lawyer and accounting fees
I am eager to raise our seed round using crowdsourcing - in my business I have people already wanting to invest and we wait on your approval. These are sophisticated investors in that they are investing in me more so that the business in the seed round. Today the amounts we need to raise (like $1M) means we need to include a bigger group of friends and family than say 20 years ago.
SEC - you have a chance here to recharge and ignite innovation in America and enable a lot more people to benefit from the successes Yes there will be business failures - but that is what America is all about - risk and reward