Bill Carleton and Joe Wallin: Senator Christopher Dodd's massive financial regulatory reform bill is back and it's even uglier than before for startup companies trying to raise seed capital. Ugly for startups?
A bill that means to address "too big to fail" and systemic risk to the financial system? Yes. And we're not talking about some indirect, attenuated, downstream effect from new regulation of big banks or Wall Street investment firms. The bill directly targets the way startups raise capital.
This "reform" occupies only a few pages in Sen. Dodd's massive bill, at Section 926, entitled "Authority of State Regulators Over Regulation D Offerings" (pages 816-819).
Under the old rules, startup companies could raise money from "accredited investors" simply and easily.
Now they are going to have to make a filing with the SEC and the SEC will have 120 days to review the filing.
To read the full, original article click on this link: Dodd's attack on angel financing
Author: Bill Carleton and Joe Wallin
