August 19, 2013
The SEC's new filing requirements will be difficult for startups to follow. They have enough on their plate trying to launch new businesses. The resulting year-long ban from fundraising is overkill.
This time frame is too narrow: "Startups must notify the SEC 15 days before they publicly discuss raising money."
If the offering materials are public then the SEC should have the responsibility of making itself aware of them: "Startups must file documents with the SEC every time they update their offering materials"
No one reads fine print, so why require it? "Startups must include legal boilerplate every time they talk about their financing publicly."