I know you are leaving the Senate shortly but, before you go, please don’t destroy angel investing by raising the bar to become an accredited investor. As you know, an accredited investor is someone who has demonstrated themselves to be an investor sophisticated enough not to warrant additional protections provided by the SEC.
Now, in the interest of full disclosure, you have to understand my trepidation using the word “protection” and “SEC” in the same sentence given the financial debacle government regulators (“Bueller? Bueller? Anyone?”…) and our financial institutions, particularly banking/investment banking, have bestowed upon the world the last 5 years. I digress.
Regarding the definition of an accredited investor, instead of basing their “sophistication” on their net worth, why not create a certification process based on their financial acumen related to angel investing? The Kauffman Foundation offers just such a course in the $400 range, I believe. I took it. I loved it. I learned from it. Thank you Bill Payne. Unfortunately for me, it was after the fact…I could have used that training before I started angel investing.
I am the CEO of a software start-up here in Austin. We could use smart accredited investors willing to provide funding, advisory, and connections. I don’t care how much capital they say they have. Like them, I care about results.
That aside, please do not do any more damage to the seed/angel investing arena. We entrepreneurs are the lifeblood of this economy — always have been, always will be. Please let us do our thing and don’t make it harder than it already is. In fact, why not move us forward, not backward, and make the basis of accreditation an individual’s training and certification, not their reported capitalization.
Call if you any any questions Senator Dodd. I’ll be more than happy to help.
James Weddle – CEO, ShareOnce.com – (512) 410-0041
Note: If you’re an entrepreneur, past, present or future, please consider signing this online petition: http://www.saveregd.com