August 18, 2013
The JOBS Act is meant to not only level the playing field for those that would like to invest in small businesses. It's also meant to make it easier for the small businesses themselves to raise funding. Startups are small, volatile companies that simply do not have the resources to swim through tons of hoops and legalese to raise funding.
This amendment would make it very difficult and time-consuming for companies like mine to raise funding. Even worse, if we make even the smallest mistake we risk being banned from fundraising for a year, which means our business would have to stop operations.
Startups are in support of the JOBS Act, but it has to actually be accessible to startups without the resources to do things pay expensive lawyers throughout the process. The venture industry is rapidly changing, and it will be nearly impossible to follow the stated amendments. Please consider removing the requirement to notify the SEC 15 days before publicly discussing fundraising. Also, only require startups to use legal boilerplate when discussing financing terms.
Thank you.