July 10, 2014
To whom it may concern:
I agree with the comment submitted by Kiran Lingam at SeedInvest on July 8, 2014 available at http://www.sec.gov/comments/s7-06-13/s70613-546.pdf that raising the accredited investor thresholds would be disastrous for startups, job creation and the U.S. economy. I believe the SEC should refrain from increasing these thresholds and should also adopt knowledge/experience based standards for an individual to become an accredited investor.
As an individual who spends my days and nights working in and around startups (and having been a part of growing several successfully), I'm continually frustrated by the fact that it's OK for me to drop as much as I'd like at the local casino, but I can't take advantage of opportunities I have to use my specific knowledge and gifts through angel investing.
Furthermore, as an entrepreneur currently in the midst of raising capital from angel investors, I can tell you that finding accredited investors with an interest in startup investing is already a difficult enough. Every potential angel I've ever met with is keenly aware of the risks associated with investing in startup companies.
Increasing the difficulty of finding and closing capital from angels will immediately extend the period of time it will take me to close capital, which takes me away from growing my business, slows our growth, limits jobs we add and increases chances of failure (by introducing new complexities).