Subject: File No. S7-09-13
From: Dileep Agnihotri, PhD
Affiliation: Entrepreneur and CEO of a start-up - Advanced Hydro Inc.

October 23, 2013

This channel of funding is going to spur innovations and enable broad range of start-ups to find capital they are seeking in order to build their companies. With current available channels, it is extremely hard to find funding for companies that have been through valley of death in their start-up life-cycle and adds a significant burden of going public.

One very important feedback/comment I would like to provide is about the proposed maximum limit ($1M) of money that can be raised. This shall be higher and a maximum range of $2-3M would be more appropriate. There are lot of manufacturing companies that can bring/create lot more jobs back in America, however, these manufacturing companies have significant capital investment needs in equipment and labor to get products "made in USA" and $1M will not enable these companies to pursue this promising channel.

On the other hand, a $2M raise will allow a company to put together a production plant for goods that we keep importing from China. It can allow company like mine to sustain a bigger team to grow and market our products. So I would strongly urge to make this maximum limit as high as $2M or even $3M. To protect smaller investor for this kind of raise, restriction may be put by allowing only 100k net worth investor to participate for over $1M raise. One one hand, this will reduce investor pool for companies, however, it will allow higher raise from higher net worth people and allow a better scrutiny of business plans since generally people with higher net worth are more involved in assessing business opportunity than people with low net worth and the later group tends to follow trends or crowds.

Thank you for consideration of my comments