August 20, 2013
If the goal of the legislation was to allow startups to raise money in public, the rules surrounding that should actually allow startups to raise money in public. Startups are constantly evolving and constantly fund raising, thus requiring them to notify the SEC 15 days before fund raising is unrealistic. If the SEC must get a new filing every time the fund raising materials change (which for many startups could be several times a month), hopefully there is a solution to allow that information to be sent to the SEC electronically and effortlessly by the startup.
Finally, a one year ban as punishment for a fund raising mistake is a death sentence for a startup. Hopefully another remedy for mistakes can be considered.