July 24, 2013
Dear SEC:
Please don't amend Reg D and Form D and make life more difficult for startups to raise money, and make it impossible for Angel groups to operate with start ups . This is contrary to what Congress intended in the JOBS Act. The whole point of the JOBS Act was to make it easier for startups to raise money, not harder.
The new filing requirements will make it overly burdensome for startups and the angel groups who want to work with them. The penalties for "general solicitation" without filing Form D will jeopardize the ability for Startups to raise capital- hurting both Angels and start ups. Congress didn't specify any filing requirements in the JOBS Act. Why new filing requirements?
We don't want to have to complete more paperwork to raise money. Requiring more information on Form D is also something that is specifically contrary to the intentions and spirit of the JOBS Act. For our competitions, we have a dozen firms come present to an accredited group of investors. (506b), but if we publish a list of start ups we are considering on our blog, does that constitute general solicition, requiring filing, and invoking penalties? If one of the other investors tweets about the company with the intention of general PR, not solicitation, is that General solicitation? Does that put our start up and our investment at risk with the burdensome filings and terrible penalites (there is nothing worse for a start up than not being able to raise capital)
We don't want start ups to have to file forms in advance of generally soliciting. Congress didn't specify this. Why are you?
It is already very difficult for startups to raise funds. Please don't harm us by making it even harder.
Sincerely,
Katherine Cleland