Dan Rosen, Joe Wallin and William Carleton: As we have previously
blogged, Senator Dodd's financial reform bill has posed a grave
threat to angel investment and startup communities nationwide by virtue
of two provisions in the bill that would have upended Regulation D.
These "reforms" were ostensibly to address the problem of unscrupulous brokers, dealers, and promoters who have abused Reg D to defraud investors. The problem was, the provisions in Sen. Dodd's bill were unnecessarily broad.
Fraud is uncommon in angel investment transactions, and there were other ways to reform Reg D without gutting the rule that is working well to make startup and angel financing safe and efficient. Here's a quick refresher on the two problematic provisions in Sen. Dodd's bill, problematic for startups and angels.
To read the full, original article click on this link: Rules for angel financing saved
Author: Dan Rosen, Joe Wallin and William Carleton
