August 17, 2013
I work at a startup in New York and do not agree with the proposed requirements by the SEC.
The SEC is proposing difficult filing requirements, which many startups will fumble, resulting in a one year ban from fundraising
Startups must notify the SEC 15 days before they publicly discuss raising money.
Startups must file documents with the SEC every time they update their offering materials.
Startups must include legal boilerplate every time they talk about their financing publicly.
If you goal is to help startups these rules will have the opposite effect. You need to make it easier to raise funding not harder. A 1 year ban is not a reasonable penalty. What if that business can impact the country, should we delay that business from starting because of a minor oversight? Please remove these rules. Thank you.