August 20, 2013
Dear SEC,
The Jobs Act was intended to allow the free-flow of capital to every person desiring to raise money for their venture and citizens the opportunities for investment that now are reserved only for the rich.
I am the Co-Founder of a B2B2C technology that will service the $65 billion dollar global Skincare/Cosmetics industry - potentially saving hundreds of grassroots retail jobs that communities depend on.
Due to the Banking Crisis - of which the SEC completely failed to protect the American public/economy - B2B accredited investor fundraising was nearly impossible.
With no other alternatives, my Co-Founder and I bootstrapped $350K with our 401K's, personal savings and mortgaging our homes lives to the hilt.
Now as the economy recovers the SEC proposes regulations that will strangle any hope of securing 'community/supporter' investment.
Here are some of my main issues with the proposed rules:
1) Startups must notify the SEC 15 days before they publicly discuss raising money
2) Startups must file documents with the SEC every time they update their offering materials
3) Startups must include legal boilerplate every time they talk about their financing publicly
How is it possible that I can go to any casino and 'invest' my savings on a craps table and the SEC does not interfere, but I am not allowed to 'invest' in a start-up knowing full well it may fail - without the SEC's lame attempt to 'protect' me?
I know my ROI odds in Vegas are much lower than my ROI odds for a US-based technology start-up.
And isn't it my right as an American citizen to 'roll the dice' wherever I please?
Please reconsider the consequences of these stiff regulations as they will financially impact me, my co-founder and hundreds/thousands of American entrepreneurs.
Respectfully,
Lisa O'rrell
Los Angeles, CA. USA