October 17, 2012
Thank you for working on the details of equity based crowdfunding.
As an entrepreneur and American Citizen, I am concerned with recent SEC discussions.
In particular, I am referring to the topic of further categorizing investors. This is simply confusing to the American people and restrictive for entrepreneurs to raise capital, start small businesses and provide jobs for America.
Are you an Accredited Investor? The answer should be Yes or No. And the criteria should be clear and concise. The investor should be able to "self-certify" as an Accredited investor. Adding a verification process only adds more red tape for the platform owners, entrepreneurs and investors. Additionally, it opens up opportunities for Securities lawyers to sue entrepreneurs. We don't want red tape and lawsuits, we want free flow of capital to small business.
Confusing requirements will create uncertainty instead of investor confidence. Lack of investor confidence will result in unfunded businesses and less jobs. This is contradictory to the premise of the Jobs Act.
I hope you will read and consider my comments.
In summary, please do not have multiple classifications for an investor. Please allow investors to self certify.
Let's keep the Securities lawyers at bay and create an environment where capital can flow freely to entrepreneurs. This will promote stimulating the economy and job growth in the private sector.