Mar. 29, 2020
As an investor in small businesses and startups since 2016 (over 90 companies invested in since the JOBS act was implemented), I have witnessed the need to increase the maximum allowed investment of $1,070,000 under Regulation Crowdfunding. Many of the companies that I invested in could have used larger amounts and were forced to have additional funding rounds as soon as current rules allowed for new use of the program without using the next funding tier which is significantly more expensive. A $5,000,000 limit would allow the firms who needed more than the current limit to raise using just one round the funds to jump start their growth. These companies are the companies that have the greatest difficulty in raising funds especially now with the Covid-19 virus adding to lending reluctance from banks and traditional sources. The proposed rule changes in release 33-10763 would address this issue and I would strongly encourage the SEC to adopt those provisions. These are the companies that will continue to make the US the world leader in economic development and provide much of the employment growth in the future. Sincerely, Richard Bjelland