Only days left to comment on the new Sec regulations for Startup fundraising
Help the SEC understand why new fundraising rules will hurt startups
New rules are about to come into effect for raising funds for startups, that might have a huge impact on your startup’s and your portfolio companies ability to raise funding.
WHAT YOU MAY KNOW
Starting Sep 23, startups will be able to publicly raise money from accredited investors
WHAT YOU MAY NOT KNOW
The SEC is proposing difficult filing requirements, which many startups will fumble, resulting in a one year ban from fundraising
- Startups must notify the SEC 15 days before they publicly discuss raising money
- Startups must file documents with the SEC every time they update their offering materials
- Startups must include legal boilerplate every time they talk about their financing publicly
Our friends at AngelList have summarized this and their thoughts here, also make sure you;