June 19, 2014
The guidelines for accredited investors are already so high that it precludes our own families and friends from investing in our small businesses. This capital is essential BEFORE we can even begin to attract angel investors, who typically invest once a prototype or proven product is created. Prototypes can cost upwards of 100,000 dollars. Where does this money come from? From those close to us who believe in the idea.
If you take away our ability to raise money - as you have been doing - from friends and family AND now from angel investors, the entire early investment ecosystem will begin to crumble. When this happens, only those entrepreneurs with existing connections to VC firms and large corporations will be able to get their projects funded. This would continually widen the already wide gap between those of us with great ideas but no money, and the rich with less innovative ideas but access to deep pockets of capital.
So, when you add additional burdens to entrepreneurs who risk their livelihoods, families, and sanity to work 120hrs per week in pursuit of an idea that are trying to raise capital, all you do is weaken the ability for us to pursue our dreams.
Please do not raise any money barriers. It's already incredibly difficult to raise money, and the trends show that early capital has been steadily decreasing over the years, in large parts because of your efforts to over burden early investors with regulations. Raising the barrier of entry to being an accredited investor will only ensure that the rich get richer, and the rest of us will sit on the sidelines with more innovative ideas, watching.
Signed,
Andrew Einhorn, M.S.
President CTO
Synoptos Inc.