October 18, 2013
Dear SEC:
I am an angel investor in Boulder, Colorado and also serve as the CIO and Managing Principal of a multi-family office managing $800 million of investor capital. I am writing in regard to two issues: the final Rule 506 regarding general solicitation, and proposed rules to expand the scope of Regulation D and Form D. Specifically, I am seeking clarification of the facts and circumstances that would reasonably establish that an investor is accredited. I also respectfully request the Commission withdraw its proposed amendments to Regulation D and Form D, as these requirements
would paralyze angel investing and virtually shut small issuers out of the capital markets.
I recognize that the JOBS Act required issuers to take reasonable steps to verify that investors are accredited when relying on Rule 506(c). However, reasonable steps should not include disclosure of personal financial information by angel investors already well-versed in the startup economy. Active angel investors are both accredited investors and knowledgeable about the risks of angel investing. This combination of fact and circumstances provides richer validation than the check-the-box method
prohibited by Congress.
I respectfully request the Commission take two actions: Withdraw the proposed rules and, provide guidance in regard to Rule 506(c), to the following effect: If an issuer verifies that a purchaser is a member of an established angel group or is otherwise actively engaged in the startup community and also provides written repres
entation that he or she is an accredited investor, the is
suer will have met the verification requirement of Rule 506(c).
Sincerely,
-David Wolf
-CIO Manging Principal
-BSW Wealth Partners
-Boulder, CO