February 12, 2022
The broad based proposed rules present an existential threat to the startup landscape as it exists today. A vast majority of innovation today is supported by early stage funding (and by small venture capital firms / angels). As it is, these early stage funds struggle to raise capital - especially when it comes to minorities and under-represented classes. Increasing regulatory requirements and stopping them from giving preferential terms to early investors will make it near impossible for these new set of investors to come into business.
As someone who is raising a small early stage fund- I personally feel the pain and if these rules were in place today, I would never have been able to raise a fund. As it is, these investments are only open to accredited investors and they understand the risks of investing in this class - so stricter regulations here would do nothing other than inhibiting innovation and diversity.